Microeconomics and macroeconomics : introduction - class-XI

The Andhra Pradesh Microfinance Institutions (Regulation of Money Lending) Act was enacted in 2011 to regulate the activities of microfinance institutions following concerns about their lending practices.

Inflation affects economies in various positive and negative ways. The negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include reducing the real burden of public and private debt, keeping nominal interest rates above zero so that central banks can adjust interest rates to stabilize the economy, and reducing unemployment due to nominal wage rigidity.

Micro Finance Systems were developed to provide financial services, including small loans, to low-income individuals or those who lack access to traditional banking services, bypassing the need for traditional collateral.

A mixed economy is characterized by the coexistence of both public (government-owned) and private sectors, allowing for both state intervention and market-driven economic activity.

Microeconomics

 Microeconomics
1. It is that part of economics which deals with the individual units of the economy. 
2. It takes into account the demand and supply of individual units. 
3. It aims to determine the price of a product using the factors of production.
4. Example: Individual income and Individual output.

Microeconomics

To study the impact of rise in the price of edible oils on the demand of edible oil is the concern of Microeconomics. Microeconomics is that part of economics which deals with the individual units of the economy. It takes into account the demand and supply of individual units and helps in studying the prices of products according to it. 

Interaction of producers and consumers in a market is the subject matter of Microeconomics. Microeconomics is that part of economics which deals with the individual units of the economy. It takes into account the demand and supply of individual units. All the other options are the concern of macroeconomics.

Impact of a shortage of wheat production on wheat price comes under the domain of Microeconomics. Microeconomics is that part of economics which deals with the individual units of the economy. It takes into account the demand and supply of individual units and helps in studying the prices of products according to it. All the other options are the concern of macroeconomics as they take into account the larger picture into consideration.

Increased CNG rates by IGL comes under the domain of Microeconomics. Microeconomics is that part of economics which deals with the individual units of the economy. It takes into account the demand and supply of individual units and helps in studying the prices of products according to it. All the other options are the concern of macroeconomics.

All these options are the concerns of Macro economics. The term ‘Macro’ means large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc. 

In macro economics, we examine things such as the overall price level or GDP growth. 

The term ‘Macro’ is derived from the Greek word 'Makro' meaning large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc.  

Economic growth is outside the domain of Microeconomics. Microeconomics is that part of economics which deals with the individual units of the economy and not the issues that occur on a national scale like, economic growth and employment. It takes into account the demand and supply of individual units. 

The term ‘Macro’ means large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc. 

• Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. 
  
• It studies about the performance of the economy as a whole and not of any individual firm or business. 
  
• Thus national income, economic growth and balance of payments and trade are the concern of macro economics whereas consumer behavior is the concern of micro economics.  
  

Macroeconomics
1. It is that part of economics which deals with the economic issues that take place on a large scale. 
2. It takes into account aggregate demand and aggregate supply.  
3. It aims to determine income and employment level of the economy. 
4. Example: National income, National output.

Macroeconomics
1. It is that part of economics which deals with the economic issues that take place on a large scale. 
2. It takes into account aggregate demand and aggregate supply.  
3. It aims to determine income and employment level of the economy. 
4. Example: National income, National output.

All these options are the concerns of Macro economics. The term ‘Macro’ means large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc. 

The study of impact of increase in CRR on inflation is the subject matter of macro economics. 

The term ‘Macro’ is derived from the Greek word 'Makro' meaning large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc.  

Calculation of national income falls under the concept of macro-economics.Hence it is outside the concept of Micro economics.

The study of increase in money supply or general price or level of employment is the subject matter of macro economics. 

The term ‘Macro’ is derived from the Greek word 'Makro' meaning large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc.  

Ragnar Anton Kittil Frisch was a Norwegian economist . He coined the term micro economics and macro economics .Macro economics deals the economy as a whole. In micro economics , study of economics is done from an individual point of view.

Determination of national income is a subject matter of Macro Economics. National income refers to the total amount of money earned by an economy.

Level
of employment, GDP growth, population growth, etc. are the subject matter of
Macroeconomics. This is because macroeconomics deals with the issues of the
economy which occur on a large scale like the ones mentioned. It takes into
account the general economic factors to know about the performance of an
economy. Macroeconomics includes regional, national and global economies. 

Economic growth, that is all over development of an economy and increase in GDP ,etc - these are the concepts of macro economics since it includes the economy as a whole. It does not deal with a particular unit of production .

Microeconomics
1. It is that part of economics which deals with the individual units of the economy. 
2. It takes into account the demand and supply of individual units. 
3. It aims to determine the price of a product using the factors of production.
4. Example: Individual income and Individual output.

Micro economics deals the study of economics from an individual point of view. General price level is a subject matter of macro economics. Macro economics deal with the economy as a whole.

Macro economics theory deals with the field of economy which studies an economy as a whole. It does not look from an individual's point of view. The problem of choice or the problem of allocation of resources is addressed by the the theories of macro economics.

Macro economics is a field of economics which deals with the economy as a whole. The objective of the macro economics is to maximize the welfare of an economy. It includes principles and policies relating to full employment of available resources as well as the growth of resources.

Microeconomics refers to the field of study which deals from an individual point of view. For example, from consumer's point of view. It deals with the process regarding the functioning of the market, consumer's behaviour, interaction of the investors, etc.

Finding causes of high turnover in ABC Ltd. is a micro approach as it is related to a single firm and not to the whole economy.

Microeconomics deals with study of individuals, individual firms, individual industries, individual markets, etc. It, thus, deals with demand, supply and price mechanism.

Micro economics is the study of individual behaviour and is also known as price theory.

Microeconomics is the study of particular firm, particular household, individual price, wages, income, industry and particular commodity.

Micro-finance (MF) is a small-scale financial intermediation, inclusive of savings, credit, insurance, business services and technical support provided to the needy borrower. The thrust of the MF initiative is to channelize production and consumption credit in multiple doses based on the absorption capacity of the prospective borrower. 

Micro economics is also called as the Price theory. It studies the behavior of individual consumers, producers etc.
 It explains consumption, production, allocation and the pricing of goods.

The term "Microeconomics" was coined by Ragnar Frisch in the year 1933. It is one of fields in economics that deals with the study of individual units in the economy

• All these options except for option D are the concerns of Macro economics.
• The term ‘Macro’ means large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc. 
• Whereas Increase in maximum selling price of fertilizers is a micro issue and comes under the domain of micro-economics.

All these options are the concerns of Macro economics. The term ‘Macro’ means large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc. 

The term microeconomics was coined by Prof. Ragnar Frisch. In the Greek language ‘Mickros’ means very small. And thus microeconomics concerns itself with the small and individual part of the economy.

Government policies and rate of unemployment in an economy are the subject matter of macroeconomics.Hence, how increase in the corporate tax will hit the unemployment rate of an economy should be studied under the sphere of macroeconomics as it deals the economy as a whole.

'Lock out in TELCO' is micro approach, because microeconomics deals with
individual part of the society rather than all the units combined.

Micro economics deals with the individual approach of various parties involved in an economy, i.e, consumer, producer, price, and cost. Therefore, it studies consumer's behaviour, producer's equilibrium, and factor pricing. 

Macro economics relates to the study of economics as a whole in an economy. It reflects general equilibrium analysis of a set of people involved in the exchange mechanism i.e, as a market. Therefore, it measures the aggregates of all the micro units in the economy.

Microeconomic behaviour cannot be added-up to drive macroeconomic behaviour.

The phenomenon in Microeconomics cannot be generalized for all the units in the economy on an aggregate level.

For example the theory of an individual firm cannot be universally applied to the whole industrial sector in an economy. The theory of individual consumer behaviour is different from the behaviour of the whole economy’s behaviour at the aggregate level. The demand of a single person may not always match with the economy’s aggregate demand. 

Micro economics is also known as Price theory because it takes into account the demand and supply of individual units and thus aims to determine the price of a product using the factors of production.

It is also called the Slicing method as it is used in Microeconomics. This is because it divides the economy in slices, parts or individual units for the purpose of in-depth study. And hence the name slicing method.

When boom period is going on in the economy, the macro level economic growth is reflected positively in the micro variables of the economy, due to which all the inter-related sectors enjoy the benefits. Therefore, it showcases the relation between micro and macro economics.

Macro economics deals in the study of a nation's aggregate demand, aggregate supply, national income, employment, inflation etc. Therefore, it does not deal in individual variables like X and Co , it is micro approach because micro deals with individual part of the society.

Microeconomics deals with the study of individual demand, supply, income, production, etc. so lockout in TELCO which is an individual firm in the industry is a micro concept.

Macro economics deals in the study of a nation's aggregate demand, aggregate supply, national income, employment, inflation etc. It simply focusses on the economy as a whole. Therefore, it is the study of a nation's economy as well as its relation with other countries. 

Micro economics deals with the individual problems of production which involves cost and production function. Therefore, allocation of resources is a part of this branch.

Macroeconomics deals with all the issues affecting the national economy.

Prof. Ragnar Frisch was a Norwegian economist who was best known for founding the various disciplines of econometric and for coining the two common terms i.e. micro and macro economics which is the most widely used terms in modern economics.

Macroeconomics is the branch of economics that studies the aggregate units of the economy like national income, employment, etc. It uses lumping method for the purpose of economic study. For example, under lumping method we study the general price level that is prices of all products, and not prices of individual products.

Macro economics deals in the study of a nation's aggregate demand, aggregate supply, national income, aggregate employment and unemployment , inflation etc. Therefore, it studies group variables and not individual variables. 

Macroeconomics studies economic relationships or economic problems or economic issues at the level of the economy as a whole. Thus national income and output, general price level and balance of trade and payments- all are studied under macro economics since they all involve the study of the economic aggregates.

Keynes general theory focused on income and employment of the nation which affects aggregate demand and supply of the nation which was the main branch of macro economics after national income.

Macro economics has a separate branch known as exchange rate systems that deals in the study of external value of money in comparison to the domestic currency and how these fluctuations affects a nation's growth and development. 

In micro economics, summation of various similar markets form an industry which is located at various places according to the required resources available there and demand and supply of the commodities prevailing there. 

Micro and macro approaches of economics are very dependent on each other. To know well about the working of an economy, on must have knowledge of both the branches of economics. It can be said that macroeconomics uses the principles of microeconomics as its foundation and the former is a magnified version of the latter.

Macroeconomics studies all the aggregate units in the economy which include the value and dimensions of money, national income and output, employment, inflation, etc.

Product Pricing is a subject matter of Microeconomics.

Micro economics deals in the study of individual variables that influence the market. Therefore, study of consumer and producer behaviour for different commodities is the main aspect of microeconomics as it focuses on how different sections affect the market. 

Macro economics deals in the study of a nation's aggregate demand, aggregate supply, national income, aggregate employment and unemployment, inflation etc. Therefore, it studies group variables and not individual variables. 

Microeconomics deals with the study of individual variables like firms, workers, consumers, and investors on how they interact with each other and influence various factors in the market like price of a commodity. 

Microeconomics deals with the individual or a small unit's influence in the economic problems that prevails in the nation it is not bothered about the macro units that is the nation as a whole. Therefore at the time of estimation of micro variables of the economics, macro is assumed to be constant.

Macro economics studies economics as a whole and not from the view point of an individual unit. General price level is related to the prices of most of the commodity in a nation at a certain period of time and thus it is a macro variable.

Macro economics deals with the national income of a nation and what are its implications on various factors of the nation economically as well as socially which lead to growth and development of the economy.  

Micro economics studies economics from the point of an individual unit. Price theory is included in micro economics. Price theory determines that how demand and supply forces determine the price of goods and services in a market.

Macro economics deals in the study of economics as a whole. Aggregate supply, (that refers to total production of goods and services in the economy) national income (income incurred by a nation from the production of goods and services during an accounting period) and aggregate demand (total expenditure on the purchase of goods and services in an economy during an accounting year) - all are included in the study of macro economics.

Macroeconomics is also called Income theory as it studies the relative levels of income, output, employment, and prices in an economy. 

The income theory is a major aspect of macroeconomics theory. A major task of macroeconomics is the determination of national income. Macroeconomics studies the factors determining national income and the causes of the trends in national income.     

The main branch of micro economics deals with the change in price of a commodity due to various market forces like quantity demanded and quantity supplied of that commodity in the market. 

Consumer behaviour is a micro unit as it measures the behaviour of each consumer when they purchase the commodity which developed many theories like utility analysis, indifference curve analysis etc. 

Price fixation by producer firm is a micro variable as it is a individual firm who is deciding the price of the commodity.

Micro economics deals in the study of production of output of individual firms which requires resource allocation as many resources have alternative uses. 

National income refers to the earnings of the citizens of a nation during a given period of time and national output refers to the total production of all the firms of a nation during a given period of time.  We know, that macro economics deal with the study of economics as a whole and hence national income and output is covered in macro economics.

Microeconomics deals with the study of individual variables like firms, workers, consumers, and investors. It also studies the economic condition of a section of people and how it can be improved.

Macro economics studies economics as a whole and not from the view point of an individual. Capital output ratio is the ratio between the capital of all Indian industries to the output yielded by all these industries which is the point of national concern and thus it is included in the study of macro economics.

In deductive method, logic proceeds from the general to particular.

In a capitalist economy, the economic problems are solved by market forces of demand and supply.

Higher the prices, lower is the quantity
demanded of a product. This is a positive statement.

Micro economics study economics from the view point of an individual point. Product pricing deals with how producer fixes the prices of his products depending on the market forces and thus it is a component of micro economics.

Macro economics deals in the study of a nation's aggregate demand, aggregate supply, national income, aggregate employment and unemployment , inflation etc. Therefore, it studies aggregate or national variables and not individual variables.

Income from the railways is related to microeconomics as it is related to a particular department and not the whole economy.

Economics is divided into two parts:

Macro economics deals in the overall problems of the economy that involves the study of national aggregates. Problems of unemployment, illiteracy, etc are studied under macro economics since these include economy as a whole and not from the view point of an individual unit.

Macro economics deals with the study of economics as a whole and the study of collective or aggregate variables like national income and how they influence the whole economy. Theory of income and employment explains how aggregate demand and supply decide the level of income and employment in an economy as a whole. Thus, it is a part of macro economics.

Microeconomics deals with the study of economics from the viewpoint of an individual unit and the study of individual variables and their relation with each other that influences a market place and its factors. 

Microeconomics is defined as "The study of the economic choices individuals and firms make and of how these choices create markets." Thus the study of microeconomics looks at specific markets individually and in great detail. Thus it will tend to examine micro variables such as the demand specific to a particular market or good. It will not be concerned with the aggregate market demand, or any other aggregate variables that treat the economy as one unit. 

Microeconomics deals with the aggregates of economic issues relating to small economic units. For example, market demand is the aggregation of individual demand.

The subject matter of macroeconomics includes determination of the level of employment, national  income and price level in the economy.

Macroeconomics is a general equilibrium analysis which studies an economic phenomenon by taking all the aggregate units in the economy into consideration. 

Factor pricing refers to the determination of the factors of production in the factor market. Microeconomics deals with the study of economics from the individual point of view. Thus factor pricing is a part of micro economics.