ECONOMICS - DIFFERENTIATION BETWEEN MICRO AND MACRO

ECONOMICS
SLE GROUP 9
SLE GROUP 9 1. CHOPRA DIVYANSH SANDEEP - HFBMS065
2. CHOUDHARY VIPUL RAJESH - HFBMS066
3. CHOUHAN TANIYA SURESH - HFBMS067
4. CHUGH RAHUL RAKESH - HFBMS068
MEMBERS - 5. DALVI GAYATRI RAMCHANDRA -
HFBMS069
6. DARYANI TANYA GHANSHYAM - HFBMS070
7. DAWALE YASH ANIL - HFBMS071
8. DESAI VISHWA CHIRAG - HFBMS072
WHAT IS ECONOMICS? Economics studies the utilisation of scarce
resources of the society and how the
various goods and services produced are
distributed among the different sections of
the society.
According to modern economist Lionel
Robbins, “Economics is the science which
studies human behaviour as a relationship
between ends and scarce means which
have alternate uses.”
This indicates a constant tug of war between
multiplicity of human wants and scarcity of
resources which have alternative uses.
BASICS OF MICRO Branch of economics which studies that
ECONOMICS focuses on market behaviour of individuals
and small impacting firms in making
decisions on the allocation of resources.
It studies the pattern of demand and
supply as well as the determination of
output and price in individual market.
Studies how business firms operate under
different competitive conditions, and how
the combined actions of buyers and sellers
determine prices in a specific market.
 MICRO ECONOMIC EXAMPLES ;
TOPICS AND EXAMPLES 1. First time home buyers shopping for the
best loan interest rates.
TOPICS : 2. A business investing in capital goods in
SUPPLY order to expand.
DEMAND
3. Two businesses competing in the same
MARKET EQUILIBRIUM
ELASTICITY market.
OPPORTUNITY COST, etc. 4. An individual choosing to purchase one
product over the other.
5. Customers’ demand decreasing because
price of a service has increased.
6. Businesses lowering supply of a product
because cost increases.
BASICS OF MACRO The branch of economics concerned with
ECONOMICS large scale or general economic factors,
such as interest rates and national
productivity.
The study of the decisions of governments
or countries.
It analysis entire industries and economics
rather than individuals or specific
companies.
MACRO ECONOMIC EXAMPLES :
EXAMPLES 1. Unemployment rate
2. Inflation
3. National income
4. Gross Domestic Product (GDP)
5. Deflation
 Managerial Economics primarily depends on Micro
Economics. However, concepts and principles of
DIFFERENCE BETWEEN macro economics are not totally irrelevant for
economics. Business environment is very much
MICRO AND MACRO influenced by macro economics conditions like,
ECONOMICS growth rate of the economy, level of employment
trade cycles, fiscal and monetary policy of the
government, etc.

The survival and expansion of business firms

depend upon the overall economic
environment. Thus both micro and macro
economics are important for business
economics.
EXAMPLE SUGGESTING CASE STUDY : Different variables of the
Indian automobile industry are to be studied.
THE DIFFERENCE
The research department begins with
BETWEEN MICRO AND studying about TATA Motors, and goes on to
MACRO ECONOMICS study every other company in the indian
automobiles industry. Further, the data from
all the companies is merged to study the
industry as a whole.

Here, the study of TATA Motors and other

individual companies is micro economic in
nature. Further, the study of the industry as a
whole is macro economic.
BIBLIOGRAPHY Economics Textbook grade 12, HSC

Vipuls Business Economics

https://edurev.in/question/1986015/difference-betwe
en-microeconomic-and-macroeconomic

https://www.google.com/search?q=macro+ecoomics
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HoECAEQAA

https://www.google.com/search?
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