![]() It deals with or studies the economic behaviour of individuals, households and companies. It focuses on aggregate economic variables like inflation, poverty, unemployment rate, export and import, national income etc.īased on the above information, some of the key differences between microeconomics and macroeconomics are as follows: Microeconomics It helps resolve various issues related to economy, thereby enables it function effectively. It studies the major areas of economy like poverty, fiscal and monetary policy, employment or unemployment rate, imports and exports etc, as reflected by the changes in the Gross Domestic Product (GDP) and business cycles. Macroeconomics is the branch of economics that studies the economies on a much larger scale like economy of a geographical area, a country, a continent or the whole world. Thus, It focuses on individuals economic variables like price of a product, individual demand etc. the demand and supply of a particular product, the production capacity of an individual or business, and the effect of regulations on an industry or business. It gives emphasis on the issues that affect individuals and companies, e.g. In this type of economy, the demand is the key factor in determining the quantity and price of a product in addition to the price and quantity of similar goods and services or substitute products, in order to make correct decision regarding the allocation of limited resources. In other words, it studies the behaviour of individuals, households, companies, industries etc. Microeconomics is the branch of economics that studies the behaviour and performance of the individual units like particular households, particular firms, particular industries, etc. Let us see how they differ from each other! Microeconomics: Economics can be divided into two parts, e.g. ![]() It studies how individuals, businesses, governments etc, work together to convert limited resources into goods and services to satisfy their wants and how they allocate resources between them to satisfy their wants and needs. Economics is a social science that deals with the study of production, distribution and consumption of goods. ![]()
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