Question

Distinguish between Micro Economics and Macro Economics.

Answer 1

1) Microeconomics studies economic relationships at the level of an individual unit.

Whereas, macroeconomics studies economic relationships at the level of economy as a whole.

2) Microeconomics is basically concerned with determination of output and price of an individual firm or industry.

Whereas, macroeconomics is basically concerned with determination of aggregate output and general price level in the economy as a whole.

3) Study of microeconomics assumes that macro variables remain constant.

Whereas, macroeconomics asumes that micro variables remain constant.