Economics is divided into two sections: Microeconomics and Macroeconomics. In simpler terms, microeconomics is the study of economics at a more individual level while macroeconomics studies economic policy at a country or government-level.
While they are interdependent and complements of each other, they are still fundamentally different from each other. The approach and the purpose in which both terms are used is where the differentiations arise. This article will further explain what the other differentiations are.
The information gathered from this article will be of immense use for candidates writing the IAS Exam this year.
The differences between the microeconomics and macroeconomics are highlighted in the table below:
Differences between Microeconomics and Macroeconomics
|Microeconomics studies individuals and business decisions||Macroeconomics studies the impact of business decisions made by countries and governments|
|Microeconomics focuses on supply and demand and other forces that determine price levels||Macroeconomics focuses on the entire economy while taking a top-down approach to determine its course and nature|
|Potential investors can use microeconomics to make their decisions||Macroeconomics is an analytical tool used to craft economic and fiscal policy|
|Microeconomics offers a picture of the goods and services needed for a robust economy. It also will project which goods and services will have demand in future||Macroeconomics ensure that the economic resources available in the country are optimally utilized|
|The term microeconomics was coined by Professor Ragnar Frisch||John Maynard Keynes is largely credited with as the inventor of modern macroeconomics|
Economics (Indian Economy) is important for Prelims, and in GS 3 for UPSC Mains Exam.
Free Indian Economy study material to aid aspirants preparation:
- Indian Economy Notes for UPSC Exam
- Economy this week
- Syllabus and Strategy for UPSC Economics
- Difference Between Economic Survey and Budget
- Difference Between Economics, Economy, Economic and Economical
Difference Between Macroeconomics and Microeconomics – Download PDF Here
Familiarise yourself with the general pattern of the UPSC Exams by visiting the UPSC Syllabus page. For more articles and exam-related preparation materials, refer to the links given in the table below:
|NCERT Books||UPSC Exam Pattern||Current Affairs Quiz|
|Insight Current Affairs PDF||World Current Affairs||UPSC Syllabus in Hindi PDF|
|Green Revolution in India||Pradhan Mantri Matritva Vandana Yojana||Project Tiger|