MANAGERIAL

ECONOMICS
DIFFERENCE BETWEEN:
MICRO ECONOMICS AND MACRO ECONOMICS

By Ankita Gaikwad
Roll No. 2021023
 Economics

Micro Economics Macro Economics

Micro Economics:

 Microeconomics is the study of decisions made by people and businesses

regarding the allocation of resources and prices of goods and services. The
government decides the regulation for taxes.
 Microeconomics deals with the study of how individuals and businesses
determine how to distribute resources and how they interact.
 The supply and demand theory in microeconomics.
MACRO ECONOMICS

Macroeconomics refers to the study of the aggregate economy.

The primary goals of macroeconomics are to achieve stable economic growth
and maximize the standard of living.
Economic indicators are good source of information to track macroeconomic
performance.
Monetary policy and fiscal policy are tools used by the government to control
economic performance and reach macroeconomic goals
Difference between: Micro Economics and Macro Economics

Micro Economics Macro Economics

Meaning

Microeconomics is the branch of Economics that Macroeconomics is the branch of Economics that
is related to the study of individual, household deals with the study of the behavior and
and firm’s behavior in decision making and performance of the economy in total.
allocation of the resources.

Area of Study

Microeconomics studies the particular market Macroeconomics studies the whole economy, that
segment of the economy covers several market segments
 Deals with

Microeconomics deals with various issues like Macroeconomics deals with various issues like
demand, supply, factor pricing, product pricing, national income, distribution, employment,
economic welfare, production, consumption, general price level, money, and more.
and more.

Examples

Consumer equilibrium, individual income Unemployment, interest rates, inflation, GDP, all
and savings are examples of fall into Macroeconomics.
microeconomics.

Scope

It covers several issues like demand, supply, It covers several issues like distribution,
factor pricing, product pricing, economic national income, employment, money, general
welfare, production, consumption, and more. price level, and more.
 Significance

It is useful in regulating the prices of a product
alongside the prices of factors of production
(labor, land, entrepreneur, capital, and more)
within the economy.
It perpetuates firmness in the broad price
level, and solves the major issues of the
economy like deflation, inflation, rising prices
(reflation), unemployment, and poverty as a
whole.

Limitations

Microeconomics has limited scope as it cannot In spite of growing popularity of

study many important economic policies and macroeconomics, it is not free from
problems like fiscal policy, monetary policy, limitations. There are limitations such as
inflation, unemployment, etc. which are very macroeconomic conclusion depend on
important in economy. individual units.
THANK YOU