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| 1. |
What is microeconomisc and macroeconomics |
| Answer» Differences between microeconomics and macroeconomics are given below\tBasisMicroeconomicsMacroeconomicsMeaningMicroeconomics studies economic issues and problems at the level of an individual\xa0firm, an individual household etc.Macroeconomics studies economic issues and problems at the level of the economy as a whole.Tools\xa0Demand and supplyAggregate demand and aggregate supplyConcernIt is basically concerned with the determination of output and price for an individual firm or industry.It is basically concerned with the determination of aggregate output and general price level in the economy as a whole.FocusIts focus is on the maximization of individual\'s gain.Its focus is on the maximization of social welfare.ScopeIt has a narrow scope, i.e. an individual person, an individual market etc.It has a very wide scope, i.e. a country.Other nameIt is also known as Price TheoryIt is also known as Income and Employment Theory.ExamplesIndividual income, individual output.National income, national output.\t | |