Macro economics and micro economics

 Macro economics and micro economics 

Micro economics

Definition

The economics which deals with individual economic issues is called micro economics.

Meaning 

Derived from the Greek word 'Mikros' , which means small.

Known as 

It is also called price theory.

Coverage

Subject matters based on individual units of economy like a producer , a consumer , etc.

Equilibrium

Market equilibrium in microeconomics determined by market demand and supply.

Micro economics 

Definitions

The economics which deals with aggregate economic issues is called microeconomics.

Meaning

Derived from the Greek word ' Makros ' , which means large.

Known as 

It is also called income theory.

Coverage

Subject matters based on aggregate issue of the economy like aggregate demand , poverty , etc.

Equilibrium 

Market equilibrium in macroeconomics determined by aggregate demand and supply.

Objective

Economic development , price stability , maintaining favourable BOP , Reduction unemployment , etc. , Are it's major objectives.

Conclusion of microeconomics

Microeconomics deals with resources allocation , product pricing , and factor pricing. So , it is also called price theory. Resources allocation determine what to produce , how to produce , and for whom to produce. It deals with product pricing with the help of market forces-demand for product. Likewise, it determines factor pricing with the help of respective demand for and supply of factors.

Conclusion of macroeconomics

Macroeconomics is comprised of theories that study and explain the aggregate of the economy , national level economic problems and policies aimed at solving these problems. The analysis of income and employment , General price level , economic growth , and income distribution are the major constituent's of microeconomics theory.