What are Micro economy and macro economy?

Answer 1

The main difference between macro and micro economics is the areas which they deal with.

Macroeconomics takes into account the whole economy, such as government policies, and the supply and demand for ALL goods and services in an economy.

Microeconomics deals with individual goods and services and how the demand and supply of different products varies in relation to price, income or the price of other goods.

Answer 2

Micro economy is the study of the micro units of market economy of supply & demand of goods & services that are market forces to determine price of a commodity.

Macroeconomy is the study of the aggregate goods & services -total production of the nations economy-equlibrium level of income & employment of resources in national economy(dwells into inflation, unemployment, GDP).

Microeconomics is more focused on individual market businesses and their actions in accordance with income-supply and demand as price theory.

Answer 3

Micro Economics:- It is that part of economic theory which studies individual units of economy. For eg: Individual firm, Individual income, Individual household

Macro Economics: It is that part of economics theory which studies the economy as a whole. For eg: National income, price level, capital formation.

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Microeconomics is concerned with specific individual units of the economy such as one firm and it's details for example.

Macroeconomics is concerned with the economy as a whole and deals with major issues such as inflation, unemployment, population growth, etc. Micro is small, macro is bigger.

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According to Craven(1990) microeconomics is concerned with the firm, the consumer production and selling, the demand and supply of goods and services while macroeconomics is concerned with how national economy operates, employment and unemployment, inflation, national production and consumption and money supply in a country