Micro Economics
- The evolution of microeconomics took place earlier than macroeconomics
- It deals with an individual's economic behavior.
- It is a branch of economics, which studies individual economic variables like demand, supply, price
- It has a very narrow scope e. an individual, a market, etc.
- Demand, supply, market forms relate to microeconomics.
- It is helpful in analysis of an individual economics unit like firm.
- Theory of demand, theory of production, price determination theory , develop from microeconomics.
- The concepts of microeconomics are independent concepts.
- These concepts have more theoretical value.
- The concepts were popularized by the famous Alfred Marshall.
- Worm’s eye view/ Microscopic view
- Method of Slicing
- It is a mortal concept
- Simple
- Price Theory
Macro Economics
- It evolved only after the publication of keynes' General theory of employment, interest and money.
- It deals with aggregate economic behavior of the people in general.
- It is a branch of economics which studies aggregate economic variables, like aggregate demand, aggregate supply, price level etc.
- It has a very wide scope e. a country.
- Aggregate demand, aggregate supply, national income relate to macro economics.
- It is helpful for analyzing the level of employment, income, economic growth etc.
- Theory of national income, theory of employment, theory of money, theory of general price level develop from macro economics.
- The concepts of macro economics are interdependent on one another.
- These concepts have more practical value.
- The concepts were popularized by the famous Lord M. Keynes.
- Bird’s eye view
- Method of Lumping
- It is an immortal concept
- Complex
- Income theory