Which among the following describes the major difference between micro economics and macro economics?

Micro economics deals with the economics of individual countries, while macro economics describes the functioning of the world economy.

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Micro economics is concerned with the behaviour of individual entities like market, firm, etc.; while macro economics, with the overall performance of the economy.

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Macro economics is concerned with the behaviour of individual entities like market, firm, etc.; while micro economics with the overall performance of the world economy.

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Micro economics is positive economics while macro economics is normative economics.

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Solution

The correct option is B Micro economics is concerned with the behaviour of individual entities like market, firm, etc.; while macro economics, with the overall performance of the economy.
Microeconomics deals with the study of individual variables like firms, workers, consumers, and investors and how they influence the market, whereas, macro economics deals in the study of a nation's aggregate demand, aggregate supply, national income, aggregate employment and unemployment , inflation etc. which leads to overall growth and development of the economy.

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Similar questions

Q. Do you agree with the following statements? Give reasons.

1) The scope of Macro-Economics is wide.
2) Macro-Economics deals with the study of individual behavior.
3) Macro-Economics is individualistic
4) Macro-Economics is different from Micro-Economics.
5) Macro-Economics is a partial equilibrium analysis.

Q. Give reasons or explain the following statements

1) Macro-Economics is the study of aggregates.
2) Macro-Economics is also known as income and employment theory.
3) The scope of Macro-Economics is wide.
4) Macro-Economics deals with whole economy.
5) Macro-Economics is different from Micro-Economics.

Q. Give Reasons or explain the following statements.
Macro Economics is different from Micro Economics. Or Macro Economics is wider than Micro Economics.

Q. Distinguish between Micro Economics and Macro Economics.

State the following statements are true or false.
1) Macro-Economics is known as income analysis.
2) Increase in national income is a Micro- Economic goal.
3) Macro-Economic adopts lumping method.
4) Study of price determination is a subject matter of Macro-Economics.
5) Micro-Economics deals with the study of aggregates.
6) National output is an example of macro variable.

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