Economy, asked by Anonymous, 10 months ago

what is the difference between micro and macro economics? answer in 6 marks question

Answers

Answered by nisha5434
11

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.

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Answered by tripathiradha768
2

Explanation:

Economic is a study about how individuals, businesses, and governments make choices on allocating resources to satisfy their needs. These groups determine how the resources are organized and coordinated to achieve maximum output. And they are mostly concerned with the production, distribution, and consumption of goods and services.

Economics is divided into two important sections, they are: macroeconomics & microeconomics

⇨ macroeconomics deals with the behaviour of the aggregate economy and

microeconomics focuses on individual consumers and businesses.

What is Microeconomics?

Microeconomics is the study of decisions made by people and businesses regarding the allocation of resources and prices of goods and services. The government decides the regulation for taxes. Microeconomics focuses on the supply, that determines the price level of the economy. It uses the bottom-up approach strategy to analyze the economy. In other words, microeconomics tries to understand human choices and resource allocation. Microeconomics does not decide what are the changes taking place in the market, instead, it explains why there are changes happening in the market.

The main key role of microeconomics is to examine how a company could maximize its production and capacity so that it could lower prices and better compete in its industry. A lot of microeconomic information can be gleaned from the financial statements.

the important key factors of microeconomics are :

Demand, Supply, and Equilibrium

Production Theory

Costs of Production

Labor Economics

Examples: Individual Demand, Price of a product.

What is Macroeconomics?

Macroeconomics is a branch of economics that depicts a substantial picture. It scrutinizes itself with the economy at a massive scale, several issues of an economy are considered. The issues confronted by an economy and the headway that it makes are measured and apprehended as a part and parcel of Macroeconomics.

Macroeconomics studies the association between various countries regarding how the policies of one nation have an upshot on the other. It circumscribes within its scope, analysing the success and failure of government strategies.

In macroeconomics we normally clarify the survey of how the nation’s total manufacture and the degree of employment are associated with features (called ‘variables’) like :

Cost prices

Wage rates

Rate of interest

Profits etc.,

by concentrating on a single imaginary good and what happens to it.

The important concepts covered under microeconomics are :

A Capitalist Nation

Investment expenditure

Revenue

Examples: Aggregate Demand, National Income.

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