We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Distinction between Microeconomics and Macroeconomics Essay

Sorry, but copying text is forbidden on this website!

Microeconomics is the study of individual economic units of an economy whereas macroeconomics is the study of aggregates of an economy as a whole. For example, when we study of an individual sugar mill manufacturing sugar, our study is micro analysis but if we study the entire sugar manufacturing sector of the economy, our study is macro analysis.

Also please note if we study the problem of production of a firm, our analysis is micro study but if we study the problems of production of the whole economy, our analysis is macro study. Both Microeconomics and Macroeconomics are inter-dependent and complementary.

The main difference between the Microeconomics and Macroeconomics are as follows: Microeconomics
Macroeconomics
1. It is the study of individual economic units of an economy It is the study of economy as a whole and its aggregates.
2. It deals with individual income, individual prices and individual output, etc. It deals with aggregates like national income, general price level and national output, etc.
3. Its Central problem is price determination and allocation of resources. Its central problem is determination of level of income and employment.
4. Its main tools are demand and suply of a particular commodity/factor. Its main tools are aggregate demand and aggregate supply of economy as a whole.
5. It helps to solve the central problem of what, how and for whom to produce in the economy It helps to solve the central problem of full employment of resources in the economy.
6. It discusses how equilibrium of a consumer, a producer or an industry is attained. It is concerned with the determination of equilibrium level of incoem and employment of the economy.
7. Price is the main determinant of microeconomic problems.

We will write a custom essay sample on Distinction between Microeconomics and Macroeconomics specifically for you

Order now

Income is the major determinant of macroeconomic problems.
8. Examples are: individual income, individual savings, price determination of a commodity, individual firm’s output, consumer’s equilibrium. Examples are: National income, national savings, general price level, aggregate demand, aggregate supply, poverty, unemployment etc.

How to cite this page

Choose cite format:

Distinction between Microeconomics and Macroeconomics. (2016, Mar 10). Retrieved from http://tasteofthewestindies.com/%ef%bb%bfdistinction-between-microeconomics-and-macroeconomics-essay

We will write a custom essay sample onDistinction between Microeconomics and Macroeconomicsspecifically for you

Our customer support team is available Monday-Friday 9am-5pm EST. If you contact us after hours, we'll get back to you in 24 hours or less.

By clicking "Send Message", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
No results found for “ image
Try Our service
online

Hi, I am Sara from Studymoose

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out http://goo.gl/CYf83b

online

Hi, I am Sara from Studymoose

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out http://goo.gl/CYf83b

image

Your Answer is very helpful for Us
Thank you a lot!

Sitemap