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    Micro and Macro Economics

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    Sudheer Vishwakarma
    Microeconomics is the study of decisions made by individuals and businesses regarding resource allocation and prices. It focuses on supply and price levels. Microeconomics analyzes the economy from the bottom up by examining human choices and resource allocation. It explains changes in the market but does not determine what changes occur. Macroeconomics examines the entire economy, issues countries face, and the effects of governmental policies. It analyzes factors like costs, wages, interest rates and profits to understand how a nation's production and employment relate to these variables.

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    Micro and Macro Economics

    Uploaded by

    Sudheer Vishwakarma
    517 views2 pages
    Microeconomics is the study of decisions made by individuals and businesses regarding resource allocation and prices. It focuses on supply and price levels. Microeconomics analyzes the economy from the bottom up by examining human choices and resource allocation. It explains changes in the market but does not determine what changes occur. Macroeconomics examines the entire economy, issues countries face, and the effects of governmental policies. It analyzes factors like costs, wages, interest rates and profits to understand how a nation's production and employment relate to these variables.

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    Microeconomics is the study of decisions made by individuals and businesses regarding resource allocation and prices. It focuses on supply and price levels. Microeconomics analyzes the economy from the bottom up by examining human choices and resource allocation. It explains changes in the market but does not determine what changes occur. Macroeconomics examines the entire economy, issues countries face, and the effects of governmental policies. It analyzes factors like costs, wages, interest rates and profits to understand how a nation's production and employment relate to these variables.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    517 views2 pages

    Micro and Macro Economics

    Uploaded by

    Sudheer Vishwakarma
    Microeconomics is the study of decisions made by individuals and businesses regarding resource allocation and prices. It focuses on supply and price levels. Microeconomics analyzes the economy from the bottom up by examining human choices and resource allocation. It explains changes in the market but does not determine what changes occur. Macroeconomics examines the entire economy, issues countries face, and the effects of governmental policies. It analyzes factors like costs, wages, interest rates and profits to understand how a nation's production and employment relate to these variables.

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    © All Rights Reserved
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    What is Microeconomics?

    Microeconomics is the study of decisions made by people and businesses regarding the
    allocation of resources and prices of goods and services. The government decides the regulation
    for taxes. Microeconomics focuses on the supply that determines the price level of the economy.
    It uses the bottom-up approach strategy to analyze the economy. In other words,
    Microeconomics tries to understand human choices and resource allocation. Microeconomics
    does not decide what are the changes taking place in the market, instead, it explains why there
    are changes happening in the market.
    The main key role of Microeconomics is to examine how a company could maximize its
    production and capacity, so that it could lower prices and better compete in its industry. A lot of
    microeconomic information can be obtained from the financial statements.
    The key factors of Microeconomics are:

     Demand, Supply, and Equilibrium


     Production Theory
     Costs of Production
     Labor Economics
    Examples: Individual Demand, Price of a product.

    What is Macroeconomics?
    Macroeconomics is a branch of Economics that depicts a substantial picture. It scrutinizes itself
    with the economy at a massive scale, several issues of an economy are considered. The issues
    confronted by an economy and the headway that it makes are measured and apprehended as a
    part and parcel of Macroeconomics.
    Macroeconomics studies the association between various countries regarding how the policies of
    one nation have an upshot on the other.
    It circumscribes within its scope, analyzing the success and failure of government strategies.
    In Macroeconomics, we normally clarify the survey of how the nation’s total manufacture and
    the degree of employment are associated with features (called ‘variables’) like:

     Cost prices
     Wage rates
     Rate of interest
     Profits, etc.
    By concentrating on a single imaginary good and what happens to it.
    The important concepts covered under Macroeconomics are:

    1. A Capitalist Nation
    2. Investment expenditure
    3. Revenue

    Examples: Aggregate Demand, National Income.

    Top 6 Differences Between Microeconomics And Macroeconomics:


    Parameters Microeconomics Macroeconomics
    of Differentiation
    Meaning Microeconomics studies the Macroeconomics studies the whole
    particular market segment of economy, that covers several
    the economy market segments
    Deals with Microeconomics deals with Macroeconomics deals with
    various issues like demand, various issues like national
    supply, factor pricing, product income, distribution, employment,
    pricing, economic welfare, general price level, money, etc.
    production, consumption, etc.
    Business Application Applied to internal issues Environment and external issues
    Scope Covers several issues like Covers several issues like
    demand, supply, factor pricing, distribution, national income,
    product pricing, economic employment, money, general price
    welfare, production, level, etc.
    consumption, etc.
    Significance Useful in regulating the prices Perpetuates firmness in the broad
    of a product alongside the price level and solves the major
    prices of factors of production issues of the economy like
    (labour, land, entrepreneur, deflation, inflation, rising prices
    capital, etc) within the economy (reflation), unemployment and
    poverty as a whole
    Limitations It is based on impractical It has been scrutinized that
    presuppositions, i.e., in Misconception of Composition’
    microeconomics, it is presumed incorporates, which sometimes
    that there is full employment in fails to prove accurate because it is
    the community, which is not at feasible that what is true for
    all feasible aggregate (comprehensive) may
    not be true for individuals too

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