Question
Distinguish between microeconomics and macroeconomics. Give an example of each.

Answer

Difference between Microeconomics and Macroeconomics:
Microeconomics Macroeconomics
Studies the behaviour of individuals. Studies the behaviour of the economy as a whole.
Deals with the determination of prices and quantities of goods and services in the individual market. Deals with the determination of the aggregate price level and the quantities of goods and services in an economy.
Example: Individual demand, individual supply, rent, wages, profit and price are main variables. Example: Inflation, aggregate demand, aggregate supply and employment level are main variables.

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