what is the differences between microeconomics and macroeconomic?
Answers
Answer:
The micro economics is the study of an economic behavior of a particular individual, firm, or household, i.e. it studies a particular unit. On the other hand, macro economics is the study of the economy as a whole i.e., not a single unit but the combination of all, firms, households, nation, etc.
Economics’ is defined as the study of how the humans work together to convert limited resources into goods and services to satisfy their wants (unlimited) and how they distribute the same among themselves. Economics has been divided into two broad parts i.e. Micro Economics and Macro Economics. Here, in the given article we’ve broken down the concept and all the important differences between micro economics and macro economics, in tabular form, have a look.
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.
Answer:
Microeconomics and Macroeconomics.
Microeconomics deals with economic issues or economic problems related to microeconomic units like a household, a firm or an industry. These issues and problems are studied and addressed largely with a view to maximising individual welfare. Macroeconomics deals with economic issues or economic problems at the level of economy as a whole. These issues or problems are studied and addressed keeping in mind the goals of social welfare or collective welfare.