Question

“Study of aggregates is equally important to study individual units.” 

Substantiate the above statement by distinguishing the two branches of Economics. 

Give two examples for each.

Answer 1

1. Microeconomics which is the study of individual units is helpful in analysing a micro-economy, whereas 

macroeconomics is helpful in understanding the working of macroeconomy. 

2. Microeconomics – Individual income, price of apple Macroeconomics – Inflation, national income.