Question
Clarify the different between Micro Economics and Macro Economics.
✓
Answer
| Point of Difference | Micro Economics | Macro Economics |
| $1.$ Meaning | Micro economics studies and analyses a unit of an economy. | Macro economy deals with all economic parameters together. |
| $2.$ Decisions | It helps to economics units like consumer, firm, labour, etc. in decision making process. | It helps to the government and economic institutions in the policy making and decision making process. |
| $3.$ Scope | Price of a product, equilibrium of firms, wage determination on the basis of marginal productivity of labour etc. are carried out under micro economics. | General price determination, study of value of money, calculations of national income are without in the macro economics. |
| $4.$ Centre point of study | Centre point of study is an unit. Which studies behaviour of unit and calculates marginal. E.g. law of demand for consumer behaviour, principles of equilibrium of the firm. | Centre point of study is whole activity. Which studies overall activities. E.g. aggregate employment, national income and general price level and population etc. |
| $5.$ Greek meaning | Micro is the Greek Word, which means tiny. | Macro is the Greek Word, which means all or external. |
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