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Differentiate between Micro economics and Macro economics.
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$$ \begin{array}{|l|l|l|} \hline \text { Parameter } & \text { Micro Economics } & \text { Macro Economics } \\\\ \hline \text { Economic Unit } & \begin{array}{l} \text { It is the study of individual } \\ \text { economic units of an economy } \end{array} & \begin{array}{l} \\ \text { It is the study of economy as a whole } \\ \text { and its aggregates. } \end{array} \\\\ \hline \begin{array}{l} \\ \text { Central } \\ \text { Problem } \end{array} & \begin{array}{l} \\ \text { Its Central problem is price } \\ \text { determination and allocation of } \\ \text { resources } \end{array} & \begin{array}{l} \\ \text { Its central problem is determination of } \\ \text { level of income and employment. } \end{array} \\\\ \hline \text { Scope } & \begin{array}{l} \\ \text { It deals with individual income, } \\ \text { individual prices and individual } \\ \text { output, etc. } \end{array} & \begin{array}{l} \\ \text { It deals with aggregates like national } \\ \text { income, general price level and national } \\ \text { output, etc. } \end{array} \\\\ \hline \text { Approach } & \begin{array}{l} \\ \text { While analyzing any economy, } \\ \text { microeconomics takes a bottom-up } \\ \text { approach, } \end{array} & \begin{array}{l} \\ \text { The macroeconomics takes a top-down } \\ \text { approach into the consideration. } \end{array} \\\\ \hline \text { Main Tools } & \begin{array}{l} \\ \text { Its main tools are demand and suply } \\ \text { of a particular commodity/factor. } \end{array} & \begin{array}{l} \\ \text { Its main tools are aggregate demand and } \\ \text { aggregate supply of economy as a } \\ \text { whole. } \end{array} \\\\ \hline \begin{array}{l} \\ \text { Equilibrium } \\ \text { Analysis } \end{array} & \begin{array}{l} \\ \text { It discusses how equilibrium of a } \\ \text { consumer, a producer or an industry } \\ \text { is attained. } \end{array} & \begin{array}{l} \\ \text { It is concerned with the determination of } \\ \text { equilibrium level of income and } \\ \text { employment of the economy } \end{array} \\\\ \hline \text { Limitation } & \begin{array}{l} \\ \text { It is based on unrealistic } \\ \text { assumptions, ie. In microeconomics } \\ \text { it is assumed that there is a full } \\ \text { employment in the society which is } \\ \text { not at all possible. } \end{array} & \begin{array}{l} \\ \text { It has been analyzed that 'Fallacy of } \\ \text { Composition' involves, which } \\ \text { is possible that what is true for } \\ \text { aggregate may not be true for } \\ \text { individuals too. } \end{array} \\\\ \hline \text { Determinants } & \begin{array}{l} \\ \text { Price is the main determinant of } \\ \text { microeconomic problems } \end{array} & \begin{array}{l} \\ \text { Price is the main determinant of } \\ \text { microeconomic problems } \end{array} \\\\ \hline \text { Examples } & \begin{array}{l} \\ \text { Examples are: individual income, } \\ \text { individual savings, price } \\ \text { determination of a commodity, } \\ \text { individual firm's output, consumer's } \\ \text { equilib rium } \end{array} & \begin{array}{l} \\ \text { Examples are: National income, national } \\ \text { savings, general price level, aggregate } \\ \text { demand, aggregate supply, poverty, } \\ \text { unemployment etc. } \end{array} \\\\ \hline \end{array} $$

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