B COM Subjects are good for career opportunities but students need to know the difference between micro and macro economics. First of all, it is necessary to understand that both micro and macro economics are two subfields of Economics and both are used in economic analysis by both students and experts. However, to understand everything from a closer perspective and clear the tangling confusion of both of these, this blog is a must read for you!
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What Is Microeconomics?
Microeconomics is a subfield of economics. On the other hand, microeconomics is a subject that includes the study of individual economic agents, such as consumers, firms, and industries, and their interactions in markets. Along with this, in microeconomics resource allocation, production, consumption, and pricing of goods and services are examined. As the name mentions, micro means little. Hence, microeconomics deals with economic behavior at micro-level.
What Is Macroeconomics?
Macroeconomics is also a subfield of economics just like microeconomics. On the other hand, macroeconomics is a subject that includes the study of the whole economy instead of particular economic agents or markets.
Along with this, macroeconomics deals with overall production, income, employment, inflation, and national income of a country. Hence, it is helpful in understanding and analyzing the larger performance of the entire economy or economic system of a country. Therefore, it is crystal clear that macroeconomics deals with large-scale economic issues and the factors that influence them.
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Difference Between Micro And Macro Economics
Microeconomics deals with a particular individual or local market and business in economics whereas Macroeconomics deals with the whole national economy.
Let’s explore Micro And Macro Economics!
Study Area Of Microeconomics
Microeconomics has a comparatively smaller study area because it focuses on particular economic units. For instance, households and firms, local businesses and markets.
Study Area Of Macroeconomics
Macroeconomics, on the other hand, has a larger study area as it is clear from the name “macro” itself. Along with this, macroeconomics include the whole economy of a country instead of focusing on smaller units of economy.
Scope Of Microeconomics
Microeconomics has scope which covers market structures such as, production, consumption, pricing and demand-supply, consumer, producer and welfare, etc.
Scope Of Macroeconomics
Macroeconomics has scope which covers economic aspects of a nation such as, inflation, economic growth, national income, unemployment, global economic trends, economic policies, etc.
Price In Microeconomics
Price in microeconomics depends on the micro level based on consumer behavior, supply and demand, market failure, elasticity and surplus, etc.
Price In Macroeconomics
On the other hand, price in macroeconomics depends on the macro level such as the major national index. For instance, taxation, national income, income distribution, commodity prices in a country, and national production etc.
Decision Process In Microeconomics
Process of decision-making in microeconomics goes through a procedure of micro and internal level such as, local market and business based on demand and supply and other economic factors in a smaller area.
Decision Process In Macroeconomics
On the other hand, the process of decision-making in macroeconomics goes through a procedure which is more external and has great exposure such as, national policies, national indexes and analysis, international economic relations, etc. Hence, it has more limitations too.
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Summing up, now you know everything about the difference between micro and macro economics! So, what are you waiting for? However, for any STUDY ABROAD-related queries, feel free to connect with us! Our team of experts which has extensive expertise in studying abroad would love to assist you.
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Frequently Asked Questions
ANS: Microeconomics is the study of business and policies. On the other hand, Macroeconomics is a subject that includes study of national income and savings, etc.
ANS: Microeconomics is the study of particular things and goods whereas macroeconomics is the study of things related to the whole economy of a country.
What are some examples of microeconomics?
ANS: Some examples of microeconomics are local business, local market, public policies, etc.
ANS: John Maynard Keynes is the father of macroeconomics.
