Microeconomics and Macroeconomics are important terms in Economics . Its listens same but it has huge difference in microeconomics and macroeconomics .Here we points out some differences of them as follow : (note you can copy by making column )
Microeconomics:
- The term microeconomics was derived from Greek word ‘Mikros’ which means small.
- It is study of small individual units.
- The objective of microeconomics on the demand side is to maximize utility whereas the supply side is to maximize profit .
- It basis is price mechanism which operates with the help of individual demand and supply and help to determine equilibrium price in the market .
- Micro economics is based on the assumption of full employment resources .
- It analyzes how resources are allocated .
- Microeconomics covers the areas such as the pricing of products ,pricing of factor of production , theories of economic welfare and soon.
- Microeconomics was developed mainly by classical economic in 18th and early 19th century .
Macroeconomics :
- The macro economics was also derived from Greek word ‘Makros’ means large .
- It is the study about of the aggregate of those unit .
- The objective of macroeconomics are full employment , price stability and economics growth and favorable balance of payment .
- It’s basis is the general level of price which is determined by aggregate demand and aggregate supply .
- Macroeconomics is based on the aggregate of economy .
- It analyzes how resources can be fully employed .
- Macro economics covers the areas such as the oriels of income and employment theories of economic growth and soon .
- Macro economics was developed by J.M Keynes in 1930s decade.