Microeconomics Vs Macroeconomics
• The word ‘micro’ is derived from the Greek word ‘mikros’ which means ‘small.’
• It is the study of economics at an individual, group or company level.
• The central problem is price determination and allocation of resources.
• Price is the primary determinant of macroeconomic problems.
• It covers various issues like supply, demand, product pricing, consumption, production, economic welfare, etc.
• It takes a bottom-up approach to analyzing the economy
• Partial equilibrium method is used in microeconomics
• It deals with individual economic variables
• It consists of individual entities
• It solves the central problem of how, what and for whom to produce in the economy
• Applications: Used to determine methods of improvement for individual business entities.
• Careers: Economist, Researcher, Professor, financial advisor, and more.
• Pros: It depends on a free enterprise economy; i.e., the company is independent to take decisions.
• Cons: It only analyses a small part of an economy while a bigger part is left untouched.
• The word ‘macro’ is derived from the Greek word ‘makros’ which means ‘large.’
• It is the study of a national economy as a whole
• Its central problem is a determination of the level of income and employment.
• Income is the primary determinant of Macroeconomic problems.
• It covers various issues like national income, distribution, employment, general price level, money, etc.
• It takes a top-down approach to analyzing the economy
• General equilibrium method is used in macroeconomics
• It deals with aggregate economic variables
• The foundation of macroeconomics is microeconomics
• It solves the central problem of full employment of resources in the economy.
• Applications: Used to determine an economy’s overall health, the standard of living, and needs for improvement.
• Careers: Economist, Professor, Researcher, Financial Advisor and more.
• Pros: It is helpful in determining the BOP (balance of payments) along with the causes of deficit and surplus of it.
• Cons: Its analysis states that the aggregates are homogeneous, but occasionally they are heterogeneous.
If you are lethargic to complete economics homework assignments, call us and ask, ‘can you take my online class for me’. We will complete your assignments and earn good grades for you. We offer affordable prices for ‘take my online class for me’ service.
Can you take my online class for me? Yes, call us at 1-855-438-4936…