Difference between Micro and Macro Economics

Economics as a concept is not important only for those who are studying finance or economics, but economics is important for every other individual whether he or she is a doctor or an engineer or a businessman. Everyone uses economics in daily life and therefore one should know what exactly economics is, well in simple words economics is a study of how individuals and groups make decisions with limited resources so that they can satisfy their needs and wants.

Economics is divided into two parts or branches one is micro economics and other is macro economics, let’s see what are the differences between micro and macro economics.

1. While micro economics refers to study of economic behavior of individuals, families, or a company while macro economics refers to that branch of economics which deals with the economic behavior of the society or nation as a whole.

2. The scope of micro economics is limited as it deals at individual level, while the scope of macro economics is much wider and it studies things like inflation, unemployment, interest rate effect on economy and gross domestic product of an economy of the country.

3. Example of micro economics study is what will be the consequence of increase in salary of an individual will have on his or her purchasing power, while macro economics study what will be the consequence of higher inflation on growth of the economy or how rise in gross domestic product will help in generating employment opportunities.

14 comments… add one
  • Rohan

    thanks for sharing by this post i have cleared my doubt on micro and macro economics

  • abhishek

    Excellent help given thnkx boss!! Hats off B-)

  • MUHAMMAD AHMAD ASIF

    Thanks you for giving excellent help.
    I really like it.

  • mukesh kumar

    very well explain…

  • geresom

    i think macro is better b z it tells us the whole things in economy.

    • Vinish

      Actually they both are important, it depends on the person and the requirement of the person who is looking at the data. If your want information about a particular company then micro economics assumes importance while if you want to look into country as a whole than macro economics assumes importance.

  • Ratan Sarkar,behala

    You are realy help for this answer. thak you.

  • jaikishan

    clearly explain. But eg. are 2 much long

  • Bashirat

    Thank u very much 4 dis answer but pls can u supply me more

  • kamal Chetry

    The answer from this website helped me a lot.
    thanx!!!!!!!!!!!!!!!!!!!!!

  • rupa

    thanks… it helped me

  • rahul

    thank you ….it helped me in day of my xm

  • Manoj Kumar Singh

    Sir,

    Your answer is perfect.

  • Mudassir ahmad khan

    Great answer…Thanks Sir

Leave a Comment


Related pages


monopolistics competitiondirect and indirect currency quotesmarket penetration pricing definitionmonopolistic competition is a market situation in whichcrr and slr differenceunearned service revenue journal entrydistinction between shares and debenturestraditional economy meaninghedgers in derivative marketautocratic advantagescapital recieptdifferent types of chequesideal liquidity ratiomonopolistic firms examplescommand economy definition for kidsaccounting conventions definitiondifference between equity shares and debenturesdifference between job and process costingautocratic leadershipdisadvantages of cash managementadvantages and disadvantages of oligopolydisadvantages of decentralizationa study of non operating expenses of proprietary concernadvantages and disadvantages of internet bankingfactoring and discountingmateriality conventionmerits of mixed economyadvantages of money launderinglimitation of barter systemdefinition of durable goodcompetitive advantages and disadvantagesmerits of mixed economysteps on how to withdraw money from atmspot rate meaningglobalization advantages and disadvantagesprepaid insurance entrysignificance of foreign exchange reservesdisadvantages and advantages of advertisementadvantages and disadvantages of advertising on the internetsocialist economy vs capitalist economyhypothecation of immovable propertycharacteristics urbanisationadvantages and disadvantages of bank accountsformula for rocebartering systemwhat are examples of inferior goodsdisadvantages of industrializationpure competition market structureskimming price policy definitionimplicit vs explicit costmonopolistic competition advantages and disadvantageswhat are the advantages of a traditional economyadvantages and disadvantages of economic growthpredetermine definitionadvantages of specialisationdisadvantages of a certificate of depositdisadvantages of inflationadvantages and disadvantages of pricingstrengths and weaknesses of mixed economycash flow statement wikipediastrengths and weaknesses of socialismfinancial derivatives pptmeaning of fluctuate in hindidifference between equity share and debenturemeaning of barter systemautocratic leadershipdiscounting bill of exchangecapitalism weaknessesexamples of assetsimportance of accounting conventionsdiversifiable risk refers to riskformula for degree of operating leverageredeemable preference shares definitionpenetration pricing examples productscomplementary and substitute goodsbenefit of ppfexamples of substitute goods in economicsmarket skimming pricingdifference between socialism and capitalismfifo method accounting