Economics

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.