Micro and Macro

Economics
Relationship between
Science, Engineering,
Technology and Economic
Development
Economics
Economics is the study of those activities of human beings
which are concerned with the satisfaction of unlimited wants
by utilizing limited resources.

Some examples of economic activities include:

Transportation, Buying in the market, Traveling, Production,

Supplying, Selling, Consumption, and Paying taxes.
Microeconomics
Microeconomics is a branch of
economics that studies how individuals
and organizations make decisions about
allocating scarce resources.

Scope:-

 Capital Budgeting

 Demand Forecasting

 Demand Analysis

 Production Analysis
Macroeconomics
Macroeconomics is a branch of
economics that studies the behavior and
performance of an economy as a whole .
In simpler terms, macroeconomics tries
to understand the big picture of how an
economy is performing.
Scope:
 Theory of National Income
 Theory of Money
 Theory of employment
 Theory of general price level
 Difference
b/w
Micro and Macro Economics
Basis of Difference Microeconomics Macroeconomics

The word macro has been derived

The word micro had derived from a
from ‘Makros’ which Means large.
1. Origin Greek word ‘Mikros’ which means
It is also called Theory of Income
small. It is also Called Price theory.
and Employment.

Degree of Aggregation of
2. Degree of Aggregation
Microeconomics is single unit.
Degree of Aggregation of
Macroeconomics is sum of
all unit.

Optimum allocation of
3. Objective Fully Utilization of resources.
Resources.

Change in microeconomics But change in macro- economics

4. Changes May or may not be affect affect microeconomics.
Macroeconomics
 Sometimes here are paradoxes
In macroeconomics , if wages
5. Paradoxes in both economics . If wages
declined employment decrease.
declined employment increase.

Supply & Demand play significant role Govt. policies play significant
6. Significant Role
in microeconomics role.

Its main problems are price Its main problem is determination of

7. Main Problem determination and allocation level of income and employment in
resources . company

The main focus on how to

It assumed that all resources are fully
8. Assumption Achieve full employment of
employed.
Resources.
 Relationship
b/w
Science, Engineering, Technology
and Economic Development
Science
Science is knowledge gain through experience and
verified through experiment.
Role of Science
I. Invention = An invention is the act of
combining ideas or objects in a new way to
create something that didn't exist before.
II. Innovation = Innovation is the practical
implementation of ideas that result in the
introduction of new goods or services or
improvement in offering goods or services.
III. Diffusion = Speed of innovation .
Role of Science in
Economic Development
1. Innovation and Technological
Advancement
2. Improving Productivity and Efficiency
3. Human Capital Development
4. Sustainable Development
5. Healthcare and Quality of Life
Engineering
Engineering is the use of science and mathematics to
design, test, and build machines, structures, and
processes. Engineers also maintain products, structures,
and systems, and develop new technologies and processes.
Role of Engineering in production process
i. improve the efficiency of the manufacturing process.
ii. Ensuring that products are produced cost-effectively
and to high quality standards.
iii. Increasing productivity.
iv. Analyzing production output.
v. Identifying unsafe production practices and following
safety procedures and guidelines.
vi. Performing quality checks.
Technology
Acc. Northern Rosenberg "Technology refers to
man's capacity to control and to manipulate the
natural environment in the fulfillment of human
goals, and to make the environment more
responsible to human needs.
Role of in production process
i. Shifting the production possibility curve
outwards.
ii. Increased Efficiency and Productivity.
iii. Expanding Production Possibilities.
iv. Innovation and Economic Growth.
v. Dynamic Adjustments over Time.
Thank You