Difference Between Microeconomics and Macroeconomics

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 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.

Difference between Microeconomics and Macroeconomics - UPSC Economics

The information gathered from this article will be of immense use for candidates writing the IAS Exam this year.

Aspirants can find more Difference Between Articles, by visiting the linked page

The differences between the microeconomics and macroeconomics are highlighted in the table below:                                                                                                                                                                            

Differences between Microeconomics and Macroeconomics

Microeconomics

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:

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:

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