6 DIFFERENCE BETWEEN MICROECONOMICS AND MACROECONOMICS

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Microeconomics is the branch of economics that deals with the economic behavior of small economic agents.

It deals with the behavior of individual economic units, like households and firms and how they make decisions and allocate resources.

In microeconomics, small-scale economic activities such as those of individuals or firms are studied.

On the other hand, macroeconomics is the branch of economics that deals with the economic behavior of the whole of economics.

It deals with large-scale economic activities, such as those of the national or global economy.

Difference between Microeconomics and Macroeconomics

1. Microeconomics deals with the study of individual economic units such as individuals and firms.

In contrast, macroeconomics deals with the study of the whole economy.

2. Macroeconomics examines several market segments of the economy, while microeconomics examines a single market segment.

3. Microeconomics is concerned with the determination of price. Therefore, it is also called the theory of price.

In contrast, macroeconomics mainly deals with aggregate output and unemployment. As a result, it is called the "theory of income".

4. While macroeconomics focuses on the price level of the national economy, microeconomics deals with individual and market prices. .

5. In microeconomics, we study individual and market demand and supply, while in macroeconomics we study aggregate demand and supply.

6. Microeconomics covers themes such as the theory of demand and supply, the theory of producer behavior, and the theory of consumer behavior.

On the other hand, macroeconomics covers themes like aggregate supply, aggregate demand, and the theory of national income equilibrium.

Tabular Comparisons of Microeconomics and Macroeconomics

FeaturesMicroeconomics Macroeconomics
Studiessmall scale economic agentsLarge scale economic agents
Analyzesindividual demand and supplyAggregate demand and supply
Also calledPrice theoryincome and employment"
Focus on economic decisions ofindividual and householdcountries and global economy
Deals withindividual and market pricesNational price level
Analysis isvery simple, because it deals wiith small scale economic agentsvery complex, because it deals wiith large scale economic agents
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