Question

Distinguish between "Microeconomics" and "Macroeconomics".

Answer 1

Difference between Microeconomics and Macroeconomics:

$\begin{array}{ccc}\text{Basis}& \text{Microeconomics}& \text{Macroeconomics}\\ \text{Meaning}& \text{It is that part of}& \text{It is that part of}\\ & \text{economics, which}& \text{economics, which}\\ & \text{studies the economic}& \text{studies the economic}\\ & \text{problems of}& \text{problems of an}\\ & \text{individual units.}& \text{aggregate level.}\\ \text{Objective}& \text{Its aim is to determine}& \text{Its aim is to determine}\\ & \text{the commodity price}& \text{National Income,}\\ & \text{or factors of}& \text{employment and}\\ & \text{production for an}& \text{growth of}\\ & \text{individual firm.}& \text{the economy as a whole}\\ \text{Tools}& \text{Its main tools are}& \text{Its main tools are}\\ & \text{demand and supply.}& \text{aggregate demand and}\\ & & \text{aggregate supply.}\\ \text{Level of}& \text{It involves limited}& \text{It involves the highest}\\ \text{Aggregation}& \text{degree of aggregation.}& \text{level of aggregation.}\\ \text{Theory}& \text{Related theories are:}& \text{Related theories are:}\\ & \text{(a) Theory of price}& \text{(a) Theory of}\\ & & \text{multiprice}\\ & \text{(b) Theory of}& \text{(b) Theory related to}\\ & \text{consumer behaviour}& \text{gap in economy}\end{array}$