Ask a Teacher

Search



what is micro & macro economics?
Micro economics deals with a small part or a small component of the national economy of a country. Micro economics may be defined as the branch of economic behaviour of the individual unit may be a person a particular household or a particular firm it is a study of one particular unit rather than all the units combined together.

               Macro economics may be defined as that branch of economic analysis which studies the behaviour of not one particular unit ; but of all the units combined together. It is a study of aggregates. Hence it is called Aggregate Economics. It is the study of the economic system as a whole. It is the study of the over all conditions of an economy.say , total production total consumption , total saving and total investment. Macro economics deal with the great averages and aggregates of the system rather than with particular units in it .


comments powered by Disqus