Question

differentiate between Microeconomics and macroeconomics?
(with points)
​

Answer 1

differentiate between Microeconomics and macroeconomics?

ans) Macroeconomics

Macroeconomics is the study of the performance, structure, behavior and decision-making of an economy as a whole.

• For most macroeconomists, the purpose of this discipline is to maximize national income and provide national economic growth.
• The most common macroeconomic topics of study for national entities are sustainability, full employment, price stability, external balance, equitable distribution of income and wealth, and increasing productivity.
• Macroeconomists hope that their models help address two key areas of research: the causes and consequences of short-run fluctuations in national income (otherwise known as the business cycle) and what determines long-run economic growth.

• deflation: A decrease in the general price level, that is, in the nominal cost of goods and services.
• Macroeconomics: The study of the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets.

• inflation: An increase in the general level of prices or in the cost of living.

Microeconomics

Microeconomics deals with the economic interactions of a specific person, a single entity or a company; it is the study of markets.

• One of the major goals of microeconomics is to analyze the market and determine the price for goods and services that best allocates limited resources among the different alternative uses.

• Microeconomics assumes businesses are rational and produce goods that maximize their profit.

• The science of microeconomics covers a variety of specialized areas of study including: industrial organization, labor economics, financial economics, public economics, political economy, health economics, urban economics, law and economics, and economic history.

• microeconomics: That field that deals with the small-scale activities such as that of the individual or company.

• Scarcity: an inadequate amount of something; a shortage

Answer 2

Answer:

The main difference between microeconomics and macroeconomics is scale. Microeconomics studies the behavior of individual households and firms in making decisions on the allocation of limited resources. ... Macroeconomics is the study of economies on the national, regional or global scale.