Friday, 12 October 2012

Explain micro vs macro economics?


Micro- economics:

Micro is a Greek word which means small micro economics is the study of the smallest part of the economy. It is the study of individual decision making units. i.e. price of a particular commodity, a consumer, income, etc. the microeconomics or the price theory thus is the study of individual parts of the economy. It is economic theory in microeconomics we set, consider whet determine the price of land and capital and enquire into the strength and weakness of market”.

According to Leftwich

“Microeconomics theory or price theory deals with the economic behavior of individual decision making units such as consumers, firs etc”.

Macro-economics:

Macro is a Greek word, which means large. Macro economics is the study of aggregate. It studied the economic system as a whole. It deals with total or big aggregates such as national income, aggregate saving and investment etc.

 According to Boulding.

“Macro economics deals not with single quantities, but with aggregates to these quantities in short macro-economics is the study of the structure and performance of national economics”.

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