• DIFFERENCE BETWEEN Micro & Macro Economics

ECONOMIC'S  is Divided into two parts viz.

MICRO ECONOMICS  &  MACRO ECONOMICS.

Both the term/concept  MICRO & MACRO ECONOMY were FIRST used by Ragnar Frisch of Oslo University in 1933.

• The term/concept MICRO ECONOMY  is   Derived from the GREEK WORD MIKROS   which means small & millionth part .

• The term/concept  MACRO ECONOMY is Derived from the GREEK WORD MAKROS   which means Large & Aggregate part of an  ECONOMY .

• In Micro economy  we analyse the economy behavior of small individual economic unit  such as INDIVIDUAL CONSUMER , INDIVIDUAL PRODUCERS , THE PRICE OF A PARTICULAR COMMODITY & FACTOR  etc .

• In Macro economy we analyse

the  behavior of the economy as a whole  OR  we study Large aggregates of the Economy  such as TOTAL NATIONAL OUTPUT , TOTAL NATIONAL INCOME , TOTAL CONSUMPTION , AGGREGATE INVESTMENT etc .

 • DIFFERENCE BETWEEN :-

MICRO ECONOMY    |   MACRO ECONOMY

                                    

1) STUDY OF INDIVI    1) STUDY OF AGGRE

- DUAL UNITS .                     - GATE.         

 

2) PRICE THEORY.         2) INCOME              

                                                  THEORY

3) SLICING METHOD.    3) LUMPING                                                                     METHOD.

4) MICROSCOPIC          4) TELESCOPIC 

   APPROACH.                       APPROACH.

5) PARTIAL                     5) GENERAL

        EQUILIBRIUM                   EQUILIBRIUM

 6) BASED ON CERT       6) BASED ON  

- AIN ASSUMPTIONS.       INTERDEPEN -

                                                 DENCE.

7) LIMITED SCOPE.         7) BROADER                                                                      SCOPE.

•  IN  SIMPLE   WORD 

MICRO  ECONOMY   IS   A    STUDY      OF  A      SINGLE     TREEE       AND     NOT THE    WHOLE    FOREST    OR     ENTIRE  FOREST . 

eg. Small parts of an Economy Such  as  Individual demand , individual supply , individual income etc.

MACRO  ECONOMY   IS    A   STUDY    OF    A      ENTIRE     FOREST    AND      NOT    A   SINGLE     TREE .

eg. Aggregate parts of an Economy such as aggregate Demand , aggregate supply , National income , price level , total consumption ,investment etc .