1.

State with reasons whether you agree or disagree with the following statements:Macro economics is different from micro economics. OR Macro economics is wider than Micro economics. OR There is difference between micro economics and macro economics.

Answer»

Yes, I agree with this statement.

  • Micro economics is a study of a particular unit of an economy. On the other hand macro economics is the study of entire economy.
  • Micro economics studies individual demand, individual supply, individual income, price determination of particular product, etc. On the other hand macro economics studies aggregate demand, aggregate supply, national income, etc.
  • Micro economics follows partial equilibrium analysis and macro economics follows general equilibrium analysis.
  • Micro economics uses slicing method for study of small unit and macro economics uses lumping method for study of large unit.
  •  Therefore, macro economics is different from micro economics. 


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