7 Difference Between Micro and Macro Economics

Micro and macro economics are the two broad parts. Economics is the study of how humans work together to convert limited resources into required goods. This is the study of how they utilize the products which are made from the limited resources and distribute them among them. Micro and macro economics are the two parts which deal with all economic aspects of the country.

Micro electronics deals with the behavior of the individual goods consumer, firm and family. While macro economics is deals with the national and international economic. In this article we will discuss in details about the difference between micro and macro economics. Their definitions, importance.

Micro vs macro economics

Sr. No.	Micro Economics	Macro Economics
1	Microeconomics majorly deals with the individual, firm and business economic units.	Macroeconomics deals with the national and international and other aggregates.
2	Micro economics primarily concentrate on the individual output, income, spends, savings and goods price.	Macroeconomics deals with national income, outputs and price levels.
3	Micro economics focus discrimination of price and allocation of resources.	Macro economics focus on the big issue like unemployment, inflation.
4	Micro economics primarily deals with the particular commodity and demand and supply.	Macroeconomics primarily deals with the national demand and supply.
5	Micro economics mainly applied to internal or operational issues.	Macroeconomics mainly deals with environmental and external issues.
6	Microeconomics covers the issue like effects on the demands of the goods with the changes in the rates.	Macroeconomics covers the whole market segments.
7	Microeconomics covers issues like supply, demand, pricing factor, economic welfare, consumption and production.	Macroeconomics covers issues like distribution, national income, employment, and general price level.

Micro economics

It’s a branch of economics which deals with the individual, firm and business behavior and performance within the economy. Micro economics mainly concentrate on the demand of goods for individual and the income of the individual and how they spend. This branch of economics is directly deals with particular person or business income and spends and savings.

Another feature of micro economics is it focuses on the casual situation in case when the market faces changes in the existing situation of the market. In that case it analyzes the economy from bottom to top.

It also deals with the business or firms like how much products are made to sell and the price of the particular products. And other aspects like what kind of resources are used by the firm to operate the business. And all other information like how many workers are working for the firm and what are the wages of the workers.

Components of micro economics

1. Demand and supply in the market.
2. Behavior of the consumer like choice of the consumer.
3. Which product’s production increases or decreases.
4. Labor market likes the demand for wedges etc.

Macro economics

It deals with the complete economy of the country. It mainly deals with the aspect which has the potential to disturb the nation’s economy. Macroeconomics covers the behavior and performance of the variable which helps in the growth of the country’s economy.

It covers the major issues which are related to economic growth. These major areas are unemployment, poverty, general price level, GDP, imports and exports, total saving, total consumption, fiscal policy and globalization. It also deals with the association between various countries’ relationships and their policies. Which helps in the international growth of the country.

Macroeconomics deals with the economic steps taken by the government to increase the economy of the country.  Macro economics also focuses on aggregated growth and its economic correlation.

It mainly deals with

. Complete economic growth of the country

. What are the reasons for the unemployment and inflation in the country.

. Fiscal policies like interest rate.

. International trade and globalization

. Reasons which disturb the economic growth with other countries.

Components of macroeconomics

1. National output
2. Unemployment
3. Inflation

Main difference between micro and macro economics

1. Microeconomics majorly deals with the individual, firm and business economic units. While macroeconomics deals with the national and international and other aggregates.
2. Micro economics primarily concentrate on the individual output, income, spends, savings and goods price. On the other hand macroeconomics deals with national income, outputs and price levels.
3. Macroeconomics focus on the big issue like unemployment, inflation. While micro economics focus discrimination of price and allocation of resources.
4. Micro economics primarily deals with the particular commodity and demand and supply. Macroeconomics primarily deals with the national demand and supply.
5. Micro economics mainly applied to internal or operational issues. Macroeconomics mainly deals with environmental and external issues.
6. Microeconomics covers the issue like effects on the demands of the goods with the changes in the rates. Macroeconomics covers the whole market segments.
7. Microeconomics covers issues like supply, demand, pricing factor, economic welfare, consumption and production. Macroeconomics covers issues like distribution, national income, employment, and general price level.

Conclusion

Economics is responsible for the growth of the country. Both these parts micro and macro economics deal with different fields. But the motive of both the parties is the national economic growth. Both parts are like the two sides of the coin. They are interrelated with each other. One’s demerit is another’s merit. Only makes difference between them is the area of their application.

This is all about the difference between micro and macro economics. We hope you like the topic very well. If you have any doubt please feel free to comment on us. For more interesting and knowledgeable topics please go through our website.