Question

micro economics and macro economics definition difference

Answer 1

The difference between micro andmacro economics is simple.Microeconomics is the study ofeconomics 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.

Answer 2

Definition of Micro Economics

Microeconomics is the branch of economics that concentrates on the behaviour 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.

Definition of Macro Economics

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, globalisation, monetary/ fiscal policy, etc. It helps in resolving the various problems of the economy, thereby enabling it to function efficiently.

Examples: Aggregate Demand, National Income, etc.