Basis | Micro Economics | Macro Economics |
Definition | Microeconomics is that branch of economics which studies economic problems relating to individuals economic units like a consumer, a Firm etc. | Macroeconomics is that branch of economics which study is economic problem relating to economy as a whole like national income, total output, total consumption etc. |
Analyze | Microeconomics analysis the partial behavior of economy. | Macroeconomics analysis the entire economy. |
Concept | Microeconomics discuss the behaviur of any decision making unit. | Microeconomics analysis the economic problem as a whole |
Approaches | Microeconomics takes a bottom up approach to analyzing the economy. | Macroeconomic analyses the economic problem as a whole. |
Equilibrium | Partial equilibrium method is used in microeconomics. | General Equilibrium method is used in macroeconomics. |
Unit of Study | Micro economics studies economic behavior of individual decision making units. Micro economic takes a microscopic view of economic system. | Macroeconomic takes economy as a whole as a unit of study. It is concerned with nature,relationship and behavior of national economic aggregates. Macroeconomics study the working and performance of economic as a whole. |
Assumptions | Microeconomics assume all the macroeconomic variables to be given E.g. - it assumes national income,Total production, consumption, Savings and Employment, general price level etc.as constant. | Macroeconomics assume economic decision of households and form to be constant meaning there by macro economics study takes all the micro economical variables to be given and constant. |
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