Answer» | Basis for Differentiation | Microeconomics | Macroeconomics | | Meaning | Microeconomics studies the particular market segment of the economy. | Macroeconomics studies the whole economy, that covers several market segments. | | Deals | Microeconomics deals with various issues like demand, supply, factor pricing, product pricing, economic welfare, production, consumption, etc., | Macroeconomics deals with various issues like national income, distribution, employment, general price level, money, etc., | | Business Application | Applied to internal issues | Environment and external issues | | Scope | Covers several issues like demand, supply, factor pricing, product pricing, economic welfare, production, consumption, etc. | Covers several issues like distribution, national income, employment, money, general price level, etc., | | Significance | Useful in regulating the prices of a product alongside the prices of factors of production (labour, land, entrepreneur, capital, etc) within the economy. | Perpetuates firmness in the broad price level and solves the major issues of the economy like deflation, inflation, rising prices (reflation), unemployment and poverty as a whole. |
|
