There are two types of economics, they are
microeconomics and macroeconomics.
Microeconomics:
Microeconomics is the
study of the decisions of individual people and business and the introduction
of those inter action.
Macroeconomics:
Macroeconomics is the study of the national economy and the global economy.
There are several differences between
microeconomics and macroeconomics, those are:
Subjects
|
Microeconomics
|
Macroeconomics
|
1.
Nature
|
Microeconomics
focuses on the market’s supply and demand factors and determines the economic
price levels.
|
Macroeconomics
is a vast field, which concentrates on two major areas, increasing economic
growth and changes in the national income.
|
2.
Focus
|
It
facilitates decision making for smaller business sectors.
|
It
focuses on unemployment rates, GDP and price indices, of larger industries
and entire economics.
|
3.
Strategies
|
It
has no strategies to maintain.
|
It
maintains two strategies:
1.
Fiscal policy
2.
Monetary policy.
|
4.
Demand and supply
|
It deals with individual and market demand and
supply and the equilibrium price etc.
|
It discusses about the aggregate Demand and
Supply.
|
5.
Founder
|
Founder
of microeconomics is Adam Smith.
|
Founder
of Macroeconomics is John Maynard Keynes.
|
6.
Meaning
|
Micro
means small.
|
Macro
means large.
|
7.
Area
|
Through
it we get the picture of smaller economic condition of the country.
|
Through
it we get the overall picture of the nation economy.
|
8.
Examples
|
If
Zeeba is a consumer, she will compare prices and choose the cheapest product
giving her the maximum utility (satisfaction). It is microeconomics.
|
If
Zeeba is the minister of trade and commerce, then she will compare the prices
and choose the cheapest product with maximum quality to control the economic
situation of the country. It is macroeconomics.
|
Indeed, both economics are important subject because of the fact of scarcity and the desire for the efficiency.
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