Macroeconomics, on the other hand, is the study of a national economy as a. While analysing any economy, micro economics takes a bottom-up approach, whereas the macroeconomics takes a top-down approach into consideration. Microeconomics is the study of economics at an individual, group or company level.Microeconomics determine the price of a particular commodity along with the prices of complementary and the substitute goods, whereas the Macroeconomics is helpful in maintaining the general price level.Microeconomics covers issues like how the price of a particular commodity will affect its quantity demanded and quantity supplied and vice versa while Macroeconomics covers major issues of an economy like unemployment, monetary/ fiscal policies, poverty, international trade, etc.Microeconomics deals with an individual product, firm, household, industry, wages, prices, etc., while Macroeconomics deals with aggregates like national income, national output, price level, etc.While microeconomics is applied to operational or internal issues, environmental and external issues are the concern of macro economics.As against this, the focus of macro economics is on aggregate economic variables. Micro economics stresses on individual economic units.Microeconomics studies the particular market segment of the economy, whereas Macroeconomics studies the whole economy, that covers several market segments.The points given below explains the difference between micro and macro economics in detail:
If you ever find yourself unable to choose micro or macro, you can always use this article as a refresher.Key Differences between Micro and Macro Economics Don’t forget to check this site any time you have questions about spelling differences or other writing topics. Microeconomics is the study of individuals and business decisions, while. Despite their differences, macro economics and micro economics are far from being totally distinct subjects. Economics is divided into two categories: microeconomics and macroeconomics. Small differences in spelling can lead to large differences in meaning-even though micro and macro are only different by one letter, they mean opposite things. The Relationship between Microeconomics and Macroeconomics. Remember, micro and tiny are both spelled with the letter I, so identifying the meaning of this word should be easy. They each have a wide variety of uses, but this simple rule holds true for all cases. Is it macro or micro? Macro and micro are terms of measurement that often appear as prefixes to other words. Simply put, micro refers to small things and macro refers to big things.Įach of these terms appears in a wide variety of contexts and refers to a vast number of concepts, but if you remember this simple rule, you will generally be able to remember which is which.Īs an even simpler memory trick, you can use the shared I between micro and tiny to help you remember that micro refers to tiny things. Here is a helpful trick to remember micro vs. On the whole, these two prefixes are hyphenated less frequently than other prefixes, but just to be sure, see our post on prefixes and hyphenation. Lacking economies of scale, the micro-territories have survived by exploiting their one truly worthwhile asset: their sovereignty, the right to do as they please.
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