Tuesday, October 19, 2010

Micro – economics and Macro – economics

Economics is the study of how societies use scarce resources to produce valuable commodities & distribute them among different people.
    There have so many distinguish between micro & macro economics. The distinguish between micro & macroeconomics is given in the bellow:
1.    Micro economics deals with individual economics problem. On the other hand macro economics deals with social & national problem.
2.    Firm manager’s deals with micro economics. Government deals with macro economics.
3.    Micro economics concern with maximum allocation of resources. Won the other hand macro economics concern with full utilization of resources.
4.    Micro economics deals with maximum of profit. On the other hand macro economics deals with maximization of out put.
5.    Social output employments price levels are given in micro economics. On the other hand all of these are variable in macro economics.
6.    Definition.
7.    Micro economics is the study of individual price, quantities and market. On the other hand macro economics is the study of the behavior of entire economy.
8.    Micro economics effect internal environment & macro economics affects external environment.
9.    Micro economics is called the price theory. Macro economics is called the theory of income and employment.
10.    Micro economics is theoretical rather that practical. Macro economics is practical rather than theoretical.
11.    It explains the composition or allocation of total production why more of some things is produced than of others. It explains the level of total production and why the level rises and falls.
12.    Example micro economics as it were the tree where macroeconomics is forest. Example macro economics as it were the forest where microeconomics is tree.

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