What are the distinction between micro and macro economics?

Answer 1

for micro we are studying the economic systems in general but as for macro we are now `looking at the world 's economy as a whole

Answer 2

In brief, the difference is that micro-economists are wrong about specific things, while macro-economists are wrong about things in general.

Macro- and microeconomics, and their wide array of underlying concepts, have been the subject of a great deal of writings. The field of study is vast; here is a brief summary of what each covers:

Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine price levels for specific companies in specific industry sectors. For example, microeconomics would look at how a specific company could maximize it's production and capacity so it could lower prices and better compete in its industry.

Macroeconomics, on the other hand, is the field of economics that studies the behavior of the economy as a whole and not just on specific companies, but entire industries and economies. This looks at economy-wide phenomena such as Gross National Product (GDP) and how it is affected by changes in unemployment, national income, rate of growth, and price levels. For example, macroeconomics would look at how an increase/decrease in net exports would affect a nation's capital account or how GDP would be affected by unemployment rate.

While these two studies of economics appear to be different, they are actually interdependent and complement one another since there are many overlapping issues between the two fields. For example, increased inflation (macro effect) would cause the price of raw materials to increase for companies and in turn affect the end product's price charged to the public.

The bottom line is that microeconomics takes a bottoms-up approach to analyzing the economy while macroeconomics takes a top-down approach. Regardless, both micro- and macroeconomics provide fundamental tools for any finance professional and should be studied together in order to fully understand how companies operate and earn revenues and thus, how an entire economy is managed and sustained. x

Answer 3

Micro(economics) studies the micro units different market/production within the market economy- demand and supply of different commodity as price mechanism theory.

Macro(economics) on the other hand studies the total/aggregate (production of goods & services)and supply of all the available resources employed in the economy to determine the level of national income.

It also studies the combined effects of the performance and behaviors of the different market structures on the economy. It studies both the internal and external relationships of the economy i.e. balance of payments,employment, exchange etc.

Answer 4

Microeconomics is generally viewed as the study of individuals and business decisions, whereas macroeconomics focuses on larger economic study such as that impacting whole country and governments or industries.

Answer 5

Microeconomics deals with economies on a small scale, with a lot of math involved. Macroeconomics deals with economies in the big picture, such as globally. There is less math in macro, but it still includes it.

Answer 6

actually difference not different. mm okah macro is a unit used for values below zero or 0. and micro is used for values above 0. like an example of macro value is 0.96, 0.54,etc. and i hope u know what micro means now??well see u in your next difficulty.

Answer 7

micro economics is the study of individual parts of the economy.it focuses on economic behaviour of consumers and firms and macro economics is the study of the economy as a whole .it focuses on the behaviour of a society at large.