The main difference is that micro-economists are wrong about specific things, while macro-economists are wrong about things in general.
The differences in the natures of macro and micro Economics help understand the difficulty of their being understood. Macro economics is about the management of the economy of a country or state or region or city. Micro economics is about the management of households, companies and industries. The rules that apply to the first do not always apply to the second and vice versa.
Margaret Thatcher once said that any housewife who can manage the family budget could also manage the national economy. She was utterly wrong for one main reason: the national budget does not have to balance. Governments can spend more than they receive in taxes and other revenues because they can borrow and they can defer payments by a wide range of means - which households and companies can't.
Therefore, the theories and principles behind micro economics do not or need not apply to macro economics. The former is concerned with balance and prudence and small-scale planning. The latter is about managing the imbalance, taking risks and making long term plans that require ignoring immediate problems or benefits.
Macro economics is the study of an entire national economy, or an international economy. It is what is usually meant by the term economics. Micro economics is the application of economic theory to a smaller economic system such as a single family or business.
The main difference is that micro-economists are wrong about specific things, while macro-economists are wrong about things in general.
The differences in the natures of macro and micro economics help understand the difficulty of their being understood. Macro economics is about the management of the economy of a country or state or region or city. Micro economics is about the management of households, companies and industries. The rules that apply to the first do not always apply to the second and vice versa.
Margaret Thatcher once said that any housewife who can manage the family budget could also manage the national economy. She was utterly wrong for one main reason: the national budget does not have to balance. Governments can spend more than they receive in taxes and other revenues because they can borrow and they can defer payments by a wide range of means - which households and companies can't.
Therefore, the theories and principles behind micro economics do not or need not apply to macro economics. The former is concerned with balance and prudence and small-scale planning. The latter is about managing the imbalance, taking risks and making long term plans that require ignoring immediate problems or benefits.
ten difference of micro economics macro economics
macro is a root for large, while micro is, of course, small
Macro economic is differ from micro economic because macro economic study as a whole economics but micro economic study only of an individual.
MACRO
macro
In simple words micro macro economics can be explained as- " What holds good for micro economics may not hold good for macro economics' Eg: Savings.
micro economics and macro economics
same as of micro economics
Uranus is the greenish blue planet and it is gaseous.
Micro economics and macro economics
Who is first use a words of micro economics & macro economics
There are quite a number of similarities between micro and macro economics. Both are studies of different facets of the economy with micro-economy analyzing mechanism in the market and macroeconomics looking at government policies in the market among other things.