Question

Explain the difference between microeconomics and macroeconomics.

Answer 1

Macroeconomics is the branch of economics that concentrates on the behaviour and performance of aggregate variables and those issues which affect the whole economy. It includes regional, national and international economies and covers the major areas of the economy like unemployment, poverty, general price level, GDP (Gross Domestic Product), imports and exports, economic growth, globalization, monetary/ fiscal policy, etc. It helps in resolving the various problems of the economy, thereby enabling it to function efficiently. 


Macroeconomics is the branch of economics that looks at economy in a broad sense and deals with factors affecting the national, regional, or global economy as a whole.

Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.


Microeconomics is the branch of economics that concentrates on the behavior and performance of the individual units, i.e. consumers, family, industry, firms. Here, the demand plays a key role in determining the quantity and the price of a product along with the price and quantity of related goods (complementary goods) and substitute products, so as to make a judicious decision regarding the allocation of scarce resources, concerning their alternative uses. Examples: Individual Demand, Price of a product, etc.


Microeconomics looks at the economy on a smaller scale and deals with specific entities like businesses, households and individuals.

Microeconomics is the branch of economy which is concerned with the behavior of individual entities such as market, firms and households.

Answer 2

Hello,here is your answer.

$\bf{Microeconomics}$-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.Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy. For example, microeconomics would look at how a specific company could maximize its production and capacity, so that it could lower prices and better compete in its industry.

$\bf{Macroeconomics}$-Macroeconomics, on the other hand, is the field of economics that studies the behavior of the economy as a whole, not just of specific companies, but entire industries and economies. It looks at economy-wide phenomena, such as Gross Domestic Product (GDP) and how it is affected by changes in unemployment, national income, rate of growth, and price levels. For example, macroeconomics would look at how an increase/decrease in net exports would affect a nation's capital account or how GDP would be affected by the unemployment rate. 

Hope it helps you.