Microeconomics refers to supply and an individual market. On the other hand, macroeconomics is the study of a national economy as a whole. The key differences between micro and macroeconomics are distinguished as follows.
| Microeconomics | Macroeconomics |
| Microeconomics studies the particular market segment of the economy | Macroeconomics studies the whole economy, that covers several market segments |
| Microeconomics stresses individual, group, or company-level economic units in terms of the total amount of goods and services produced. | Macroeconomics focuses on the entire economy in terms of the total amount of goods and services produced. |
| Microeconomics is concerned with studying the supply and demand for a specific product, the production that an individual or business is capable of, or the effects of regulations on a business. | Macroeconomics is concerned with unemployment rates, the gross domestic product of an economy, and the effects of exports and imports of a nation. |
| Microeconomics stresses issues that affect individuals and companies. It covers the study of particular markets and segments of the economy. It looks at issues such as consumer behaviour, individual labour markets, and the theory of firms (that firms exist and make decisions to maximize profits) | Macroeconomics focuses in respect of total national income, aggregate employment, and general price level in the economy. |
| Microeconomics studies product and factor pricing, production consumption, and also the theory of economic welfare.Microeconomics is also referred to as price theory because it mainly revolves around the prices of different variable | It deals with the behaviour of various economic variables that refer to the economy as a whole. These variables are—total national income, aggregate employment, the extent to which the economy’s resources are being fully employed, aggregate saving and investment, and the general price level in the economy. |
| Applied to operational or internal issues | Applied to Environment and external issues |
| Microeconomics focuses on the way taxes affect individuals and companies. | The macroeconomics focuses on the way taxes affect the economics of a nation. A macroeconomist would look at the effects of a decrease in income taxes using measures like GDP and national income, rather than individual factors. |
Related Posts:
| Introduction to microeconomics and macroeconomics | Types of economies: Market, Command, and Mixed Economies |
This article explains the meaning of Depreciation, Causes of Depreciation, Need for Depreciation, Factors of…
Before closing the ledger accounts, if the error is found you can rectify it without…
The errors in accounting take place due to wrong posting of transactions, wrong totaling or…
“Under the explanation to Section 25 of the Negotiable Instruments Act, 1881 (Central Act 26…
When the trial balance does not tally due to the one-sided errors in the books,…
Errors in Trial Balance are mistakes made during the accounting process that cannot always be…