Difference between Microeconomics and Macroeconomics.
MICROECONOMIC.
• Microeconomics has been delivered from the Greek word ‘Mikros’ which means small.
•Microeconomic is that economic theory which studies the behaviour of individual units of an economy.
•Also known as Price Theory (because its primary focus is how prices determine resource allocation).
•The price of the commodity, the behaviour of the firm etc.
•Microeconomic study individual problems.
•The Concept of Microeconomic are independent concept.
•The practical Importance is Limited
•This concept Have more theoretical values
•It Helps in take decision of individual activity.
• it focus on Individual consumer equilibrium, firm production, individual demand/supply, and market price determination.
Ex: It study of individual tree of forest.
MACROECONOMIC.
•Macroeconomics has been delivered from the Greek word ‘Makros’ which means small.
•Macroeconomic is that part of economics theory which studies Economic as a Whole.
•Also known as Income and Employment Theory (because its focus is determining national income and employment levels).
• Macroconomic study whole national income, national output, Supply and demand, investment etc of the nation.
• The concept under microeconomics are inter-dependent on one or another.
• It’s practical importance are unlimited.
• This concept have more practical value.
• It helps in taking decision regarding people and society.
•macroeconomic focus on National Income, total employment, general price level (inflation), aggregate demand, and aggregate supply.
Ex: It study the whole forest.
