What is the difference between microeconomics and macroeconomics?
Answers
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.
While macroeconomists study the economy as a whole, microeconomists are concerned with specific firms or industries.
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Explanation:
Microeconomics :
1. It is the study of individual economic units of an economy.
1. It is the study of individual economic units of an economy.2. It deals with Individual Income, Individual prices, Individual output, etc.
3. Its central problem is price determination and allocation of resources.
3. Its central problem is price determination and allocation of resources.4. Its main tools are demand and supply of a particular commodity/factor.
3. Its central problem is price determination and allocation of resources.4. Its main tools are demand and supply of a particular commodity/factor.5. It helps to solve the central problem of ‘what, how and for whom’ to produce. In the economy
Macreconomics
1. It is the study of economy as a whole and its aggregates.
1. It is the study of economy as a whole and its aggregates.2. It deals with aggregates like national Income, general price level, national output, etc.
3. Its central problem is determination of level of Income and employment.
3. Its central problem is determination of level of Income and employment.4. Its main tools are aggregate demand and aggregate supply of the economy as a whole.
3. Its central problem is determination of level of Income and employment.4. Its main tools are aggregate demand and aggregate supply of the economy as a whole.5. It helps to solve the central problem of full employment of resources in the economy.