Define Micro and Macro Economics.

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Micro Economics

Micro means ‘small’. So microeconomics indicates the study of small economic units such as households, firms. In the words of Prof. Boulding.

“Microeconomics is the stud of a particular firm, particular household, individual price wage, income, industry and particular commodity”.
Microeconomics is the analysis of economic system by parts. 

It is a study of trees, not the forest. 

Microeconomics is also called Price theory. This is because most of its discussions are related to the determination of prices of commodities, prices of productive resources and functioning of markets. 

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The major topics included in this branch are:

Theory of consumer behavious, Theory of prices, Theory of Production, Theory of firm, Theory of distribution of income, etc.

Macro Economics

Macro means ‘Large’. Thus, macroeconomics refers to the study of economic system as a whole or its major aggregates in the form of total income, total product, total expenditure, total level of employment and general price level. 

Macroeconomics examines forests, not the trees. 

The major topics included in macroeconomics are:

Theory of income and employment, Money and banking, Public Finance, International trade.
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Naeem Javid Muhammad Hassani

NJMH is working as Deputy Conservator of Forests in Balochistan Forest & Wildlife Department (BFWD). He is the CEO of Tech Urdu (techurdu.net) Forestrypedia (forestrypedia.com), Majestic Pakistan (majesticpakistan.pk), All Pak Notifications (allpaknotifications.com), Essayspedia, etc & their YouTube Channels). He is an Environmentalist, Blogger, YouTuber, Developer & Vlogger.

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