Microeconomics vs. Macroeconomics
Economics is the branch of knowledge that deals with the production, consumption, and transfer of wealth. The other famous definition of the economics tells that it is the relation of the scarcity of the commodities and their demand. Following it, we can determine that economics is the broader concept, as it is the knowledge which has both the basic essence of arts and sciences. Even if we are not an accounting or banking students, we came across the concepts of economics in daily lives when we have to make choices in between spending and saving. The economics is mainly divided into two types known as microeconomics and macroeconomics. Microeconomics is the study of economics on the individual level, whereas macroeconomics is the study of economics on the national or global level. When we talk about a particular firm, group, family or an individual than it is microeconomics. And when we examine or talk about the firms, groups, or the families in a collective manner, it would be the macroeconomics.
Key Differences
The microeconomics mainly deals with the issues like demand, supply, product pricing, factor pricing, production, consumption, economic welfare, etc. On the other hand, mainly revolves around the issues like national income, general price level, distribution, employment, money, etc.
Microeconomics is the study of economics on the individual level, whereas macroeconomics is the study of economics on the national or global level.
The price determination and classifying of the product into necessity or luxury item is also done with regards to the microeconomics. On the other hand, Some of the most prominent uses of macroeconomics are to set the general price level for the products and to dealt with issues like inflation, poverty, and unemployment.
When we talk about a particular firm, group, family or an individual than it is microeconomics. And when we examine or talk about the firms, groups, or the families in a collective manner, it would be the macroeconomics.
Comparison Chart
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Microeconomics is the study of economics at the individual or smaller scale
Macroeconomics is the study of economics at national, regional, or global level.
Example
When particular firm, group, family or an individual is under consideration with terms to economics than it is the microeconomics.
When the firms, groups, or the families are discussed in a collective manner with witnessing it's global or national impact, then it is macroeconomics.
Deals with Issues
Demand, supply, product pricing, factor pricing, production, consumption, economic welfare, etc
National income, general price level, distribution, employment, money, etc.
Usage
The price determination and classifying of the product into necessity or luxury item is also done with regards to the microeconomics.
Some of the most prominent uses of macroeconomics are to set the general price level for the products and to dealt with issues like inflation, poverty, and unemployment.
Microeconomics and Macroeconomics Definitions
Microeconomics
The study of how businesses, households, and individuals within an economy allocate limited resources.
Macroeconomics
The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors.
Microeconomics
The field of economics that deals with small-scale economic activities such as those of an individual or company.
Macroeconomics
The study of the entire economy in terms of the total amount of goods and services produced, total income earned, the level of employment of productive resources, and the general behavior of prices.
Microeconomics
The branch of economics that studies the economy of consumers or households or individual firms
Macroeconomics
The branch of economics that studies the overall working of a national economy
What is Microeconomics?
Microeconomics is the study of economics at the individual or smaller scale. The study of a firm, the family at the individual level, is done in this type of economics. As we know that micro means small, the microeconomics has the less broad spectrum, and it is more concerned with the concept of individuality. The microeconomics mainly deals with the issues like demand, supply, product pricing, factor pricing, production, consumption, economic welfare, etc. The price determination and classifying of the product into necessity or luxury item is also done with regards to the microeconomics. The other benefit of the microeconomics is the determination of prices of products after evaluating the price of different factors of production. As we know that land, labor, capital and enterprise are the factors of production; in the microeconomics, each of the factors is looked individually and then the price for the certain product is determined. In other words, we can say that the specific or individual business is studied in microeconomics.
What is Macroeconomics?
Macroeconomics is the study of economics at national, regional, or global level. In this type of economics the issues related to national interest, global beneficial are being discussed. It mainly revolves around the issues like national income, general price level, distribution, employment, money, etc. It is useful in dealing with economic issues like inflation, defloration, and unemployment. As we know that macro means large, in this type of area the collective analysis is made, which can either be on the city-district level or even on the national level. After getting into the economic data’s of different countries, one can know about these issues at the global level. The top-to-down approach is adopted in the macroeconomics while analyzing the data, unlike the bottom to top approach as in the case of microeconomics. Some of the most prominent uses of macroeconomics are to set the general price level for the products and to dealt with issues like inflation, poverty, and unemployment.
