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What are the difference between micro econòmics and macro econòmics ?

Answer» \tMicroeconomics studies the particular market segment of the economy, whereas Macroeconomics studies the whole economy, that covers several market segments.\tMicro economics stresses on individual economic units. As against this, the focus of macro economics is on aggregate economic variables.\tWhile microeconomics is applied to operational or internal issues, environmental and external issues are the concern of macro economics.\tMicroeconomics deals with an individual product, firm, household, industry, wages, prices, etc., while Macroeconomics deals with aggregates like national income, national output, price level, etc.\tMicroeconomics covers issues like how the price of a particular commodity will affect its quantity demanded and quantity supplied and vice versa while Macroeconomics covers major issues of an economy like unemployment, monetary/ fiscal policies, poverty, international trade, etc.\tMicroeconomics determine the price of a particular commodity along with the prices of complementary and the substitute goods, whereas the Macroeconomics is helpful in maintaining the general price level.\tWhile analysing any economy, micro economics takes a bottom-up approach, whereas the macroeconomics takes a top-down approach into consideration.


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