Economics is all about making choices in the presence of scarcity.
Difference between Micro and Macro Economics
Sl. No. |
Micro Economics |
Macro Economics |
i |
Microeconomics is the branch of economics which study individual economic variable / unit |
Macroeconomics is the branch of economics which study economy as whole and its aggregates. |
ii |
The main tools of micro economics are demand and supply. |
The main tools of macro economics are aggregate demand and aggregate supply |
iii |
The main problem studied is price determination. |
The main problem studied is income and employment determination. |
iv |
Microeconomics is a partial equilibrium analysis. |
Macro economics is a general equilibrium analysis. |
v |
The major microeconomic variables are price, individual consumer’s demand, wages, rent, profit, revenue, etc. |
The major macroeconomic variables are National income, aggregate demand, aggregate supply, inflation, poverty, unemployment, etc. |