differentiate between microeconomics and macroeconomics for 5 mark
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Answer:
The difference between micro and macro economics is simple. Microeconomics is the study of economics at an individual, group or company level. Macroeconomics, on the other hand, is the study of a national economy as a whole.
Microeconomics focuses on issues that affect individuals and companies. This could mean studying the supply and demand for a specific product, the production that an individual or business is capable of, or the effects of regulations on a business.
Macroeconomics focuses on issues that affect the economy as a whole. Some of the most common focuses of macroeconomics include unemployment rates, the gross domestic product of an economy, and the effects of exports and imports.
Does this make sense? While both fields of economics often use the same principles and formulas to solve problems, microeconomics is the study of economics at a far smaller scale, while macroeconomics is the study of large-scale economic issues.
Microeconomics :-
♥ Microeconomics is a part of economic theory which studies the behaviour of individual units of an economy .
♥ It's also known as ' Price theory ' .
♥ Demand and supply are the tools .
♥ It aims to determine the price of a commodity or the factors of production .
♥ E.g - Individual income and individual output .
Macroeconomics :-
♥ Macroeconomics is a part of economic theory which studies the behaviour of aggregates of the economy as a whole .
♥ It's also known as ' Income & Employment theory ' .
♥ Aggregate deman and aggregate supply are the tools .
♥ It aims to determine income and employment level of the economy .
♥ E.g - National income and national output .