{"id":9178,"date":"2021-10-21T13:18:05","date_gmt":"2021-10-21T07:48:05","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=9178"},"modified":"2025-10-09T15:32:39","modified_gmt":"2025-10-09T10:02:39","slug":"difference-between-micro-and-macro-economics","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/difference-between-micro-and-macro-economics\/","title":{"rendered":"Difference Between Micro and Macro Economics (11 Points) | Important Article"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d72195600d4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d72195600d4\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-micro-and-macro-economics\/#Difference_Between_Micro_and_Macro_Economics\" >Difference Between Micro and Macro Economics<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-micro-and-macro-economics\/#Meaning_of_Micro_Economics\" >Meaning of Micro Economics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-micro-and-macro-economics\/#Meaning_of_Macro_Economics\" >Meaning of Macro Economics<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-micro-and-macro-economics\/#Difference_Between_Micro_and_Macro_Economics-2\" >Difference Between Micro and Macro Economics<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center has-black-color has-text-color\"><span class=\"ez-toc-section\" id=\"Difference_Between_Micro_and_Macro_Economics\"><\/span><strong>Difference Between Micro and Macro Economics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Micro-and-Macro-Economics-1024x576.jpg\" alt=\"Difference Between Micro and Macro Economics\" class=\"wp-image-9193 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Micro-and-Macro-Economics-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Micro-and-Macro-Economics-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Micro-and-Macro-Economics-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Micro-and-Macro-Economics-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Micro-and-Macro-Economics-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/Difference-Between-Micro-and-Macro-Economics.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Difference Between Micro and Macro Economics<\/figcaption><\/figure>\n\n\n\n<p>Economics refers to the branch of knowledge concerned with production, consumption and transfer of wealth. Economics can be further classified into two parts: <strong>microeconomics<\/strong> and <strong>macroeconomics.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Micro_Economics\"><\/span><strong>Meaning of <\/strong>Micro Economics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Micro means a small part of a thing. <a href=\"https:\/\/en.wikipedia.org\/wiki\/Microeconomics\" data-type=\"URL\" data-id=\"https:\/\/en.wikipedia.org\/wiki\/Microeconomics\" target=\"_blank\" rel=\"noreferrer noopener\">Microeconomics<\/a> thus deals with a small part of the national economy. It studies the economic actions and behaviour of individual units such as an individual consumer, individual producer or a firm, the price of a particular commodity or a factor, etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meaning_of_Macro_Economics\"><\/span><strong>Meaning of <\/strong>Macro Economics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Macroeconomics is the branch of economics that analyses the entire economy. It deals with the total employment, national income, national output, total investment, total consumption, total savings, general price level interest rates, inflation, trade cycles, business fluctuations, etc. Thus, macroeconomics is the study of aggregates.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-micro-and-macro-economics\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-micro-and-macro-economics\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Micro and Macro Economics<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-owned-capital-and-borrowed-capital\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-owned-capital-and-borrowed-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Owned Capital and Borrowed Capital<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-debenture-and-share\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Debenture and Share<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-preference-shares-and-equity-shares\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-preference-shares-and-equity-shares\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Preference Shares and Equity Shares<\/a><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Difference_Between_Micro_and_Macro_Economics-2\"><\/span><strong><strong><strong><strong>Difference Between Micro and Macro Economics<\/strong><\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Sr. No<\/strong> <\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Micro Economics<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><strong><strong><strong>Macro Economics<\/strong><\/strong><\/strong><\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1<\/td><td class=\"has-text-align-center\" data-align=\"center\">Micro Economics studies the behaviour of<br>an individual unit of an economy<\/td><td class=\"has-text-align-center\" data-align=\"center\">Determination of income and unemployment<br>are the major problems studied under<br>macroeconomics.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2<\/td><td class=\"has-text-align-center\" data-align=\"center\">It includes individual price, individual <br>demand, individual income, etc.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It includes general prices, aggregate demand,<br>National income, etc.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3<\/td><td class=\"has-text-align-center\" data-align=\"center\">Price determination and allocation of<br>resources are the major problem studied<br>under microeconomics<\/td><td class=\"has-text-align-center\" data-align=\"center\">Microeconomics solves the central<br>the problem of what to produce, how to<br>produce and for whom to produce.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4<\/td><td class=\"has-text-align-center\" data-align=\"center\">Two major tools i.e. demand and supply<br>of a particular commodity is used in<br>microeconomics<\/td><td class=\"has-text-align-center\" data-align=\"center\">Two major tools i.e. aggregate demand (AD)<br>and aggregate supply (AS) of a particular<br>a commodity is used in macroeconomics<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5<\/td><td class=\"has-text-align-center\" data-align=\"center\">Microeconomics solves the central<br>problem of what to produce, how to<br>produce and for whom to produce.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Macroeconomics solves the central problem of<br>full employment of resources in the economy.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">6<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is concerned with the equilibrium of a<br>consumer, a producer, and an industry.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is concerned with the equilibrium of level of<br>income and employment in an economy.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">7<\/td><td class=\"has-text-align-center\" data-align=\"center\">Microeconomics uses bottom-top<br>approach for analyzing the economy<\/td><td class=\"has-text-align-center\" data-align=\"center\">Macroeconomics uses top-bottom approach for<br>analyzing the economy.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">8<\/td><td class=\"has-text-align-center\" data-align=\"center\">It assumes that all macroeconomic<br>variables like aggregate demand,<br>national income and price are constant.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It assumes that all microeconomic variables like<br>individual demand, individual income, etc. are<br>constant.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">9<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is also known as price theory.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is also known as income theory or<br>employment theory.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">10<\/td><td class=\"has-text-align-center\" data-align=\"center\">It believes in Laissez-faire economy.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It believes in command economy.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">11<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is simple to study microeconomics.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is complex process to understand<br>macroeconomic due to inclusion of large<br>numbers.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-dematerialisation-and-rematerialisation\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-dematerialisation-and-rematerialisation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference between Dematerialisation and Rematerialisation<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/difference-between-final-dividend-and-interim-dividend\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Final dividend and Interim Dividend<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-dividend-and-interest\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Dividend and Interest<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-primary-and-secondary-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Primary and Secondary Market<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/distinguish-between-money-market-and-capital-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">Distinguish Between Money Market and Capital Market<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/difference-between-broker-and-jobber\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between Broker and Jobber<\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>Learn the chapters on TYBCOM from our <a href=\"https:\/\/studio.youtube.com\/channel\/UCExY0hxogv75WdPK1MFS3fw\" data-type=\"link\" data-id=\"https:\/\/studio.youtube.com\/channel\/UCExY0hxogv75WdPK1MFS3fw\" target=\"_blank\" rel=\"noopener\">YouTube channel<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":9193,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10],"tags":[3416],"class_list":["post-9178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-educational-blogs","tag-difference-between-micro-and-macro-economics"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/9178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=9178"}],"version-history":[{"count":8,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/9178\/revisions"}],"predecessor-version":[{"id":39670,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/9178\/revisions\/39670"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/9193"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=9178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=9178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=9178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}