Question

Distinguish between the following.
Micro Economics and Macro Economics.

Answer 1

Microeconomics 1. It is that part of economics which deals with the individual units of the economy. 2. It takes into account the demand and supply of individual units. 3. It aims to determine the price of a product using the factors of production. 4. Example: Individual income and Individual output.

Macroeconomics 1. It is that part of economics which deals with the economic issues that take place on a large scale. 2. It takes into account aggregate demand and aggregate supply. 3. It aims to determine income and employment level of the economy. 4. Example: National income, National output.