Micro Economics Vs Macro Economics

Basis for
Microeconomics
Comparison Macroeconomics

Meaning The branch of economics The branch of economics

that studies the behavior that studies the behavior of
of an individual consumer, the whole economy, (both
firm, family is known as national and international) is
Microeconomics. known as Macroeconomics.

Individual economic Aggregate economic

Deals with
variables variables
Business Applied to operational or Environment and external
Application internal issues issues
Covers various issues like
Covers various issues like,
demand, supply, product
national income, general
Scope pricing, factor pricing,
price level, distribution,
production, consumption,
employment, money etc.
economic welfare, etc.
 Maintains stability in
Helpful in determining the the general price level
prices of a product along with and resolves the
the prices of factors of major problems of
Importance
production (land, labor, the economy like
capital, entrepreneur etc.) inflation, deflation,
within the economy. unemployment and
poverty as a whole.

It is based on unrealistic
assumptions, i.e. In what is true for
microeconomics it is assumed aggregate may not be
Limitations
that there is a full employment true for individuals
in the society which is not at all too.
possible.
Full employment The basic Macro economics
assumption of does not
micro economics is Assume so
full employment

THEORY Micro economics is Macro economics is

called as price theory called as income
as it is related with theory as it is
determination of the concerned with the
price of product and analysis of the
factor economy as a whole
and its large aggregate
such as national
income and output,
total employment etc