Communication and Media Studies

Economics BS 3rd
Differences between Microeconomics and Macroeconomics

Microeconomics Macroeconomics
Meaning
Microeconomics is the branch of Macroeconomics is the branch of
Economics that is related to the Economics that deals with the study
study of individual, household and of the behavior and performance of
firm’s behavior in decision making the economy in total. The most
and allocation of the resources. It important factors studied in
comprises markets of goods and macroeconomics involve gross
services and deals with economic domestic product (GDP),
issues. unemployment, inflation and growth
rate etc.
Area of study
Microeconomics studies the Macroeconomics studies the whole
particular market segment of the economy, that covers several market
economy segments
Deals with
Microeconomics deals with Macroeconomics deals with various
various issues like demand, issues like national income,
supply, factor pricing, product distribution, employment, general
pricing, economic welfare, price level, money, etc.
production, consumption, etc.
Business Application
Applicable in studying internal Applicable in studying environment
issues and external issues
   
Significance
Useful in regulating the prices of a Focus on the broad price level and
product alongside the prices of solves the major issues of the
factors of production (labour, land, economy like deflation, inflation,
capital, etc) within the economy rising prices, unemployment and
poverty as a whole

Economics, BS 3rd
Instructor: Komal Mehreen