S
No | Points of
Difference | Microeconomics | Macroeconomics |
| 1 | Origin | The word micro comes from a Greek word 'Mikros' which means small. | The word macro comes from a Greek word ' Mackros' which means large. |
| 2 | Definition | It is a branch of economics that studies the economic relationships or issues at an individual level like the households, the firms, the consumers etc. | It is a branch of economics that studies the economic relationships or issues of an economy as a whole. |
| 3 | Objective | Its main objective is to analyse the principles, problems and
policies for the achievement of the goal of optimum allocation of resources. | it investigates the principles, problems and policies relating to achievement of full employment and expansion of productive capacity. |
| 4 | Deals with | It deals with how consumers or the producers make decisions depending on their given budget and other variables. | It deals with how different economic sectors like households, industries and other government and foreign sectors make their decisions. |
| 5 | Method | The method of partial equilibrium (i.e. equilibrium in one market) is used. | The method of general equilibrium (i.e. equilibrium in all the markets, simultaneously) is used. |
| 6 | Assumptions | It assumes that while studying micro economics, macro variables remains constant. | Study of macro economics assumes that micro variables remains constant. |
| 7 | Variables | It assumes that while studying micro economics, macro variables remains constant. | Study of macro economics assumes that micro variables remains constant. |
| 8 | Significant role | In the context of micro economics 'market mechanism' plays an
important role. | In the context of macro economics 'government' plays a significant role. |
| 9 | Theories | Various theories studied are:
1.Theory of Consumer's
Behaviour and Demand
2. Theory of Producer's
Behaviour and Supply
3. Theory of price
Determination under different market conditions | Various theories studied are
1. Theory of National Income
2. Theory of Money
3. Theory of General Price level
4. Theory of Employment
5. Theory of International trade |
| 10 | Popularized by | Alfred Marshal | Keynes |
