Questions Science and Education

What is micro and macro economics?

Airtract

Jasmin Khan

Take the risk or lose the chance

Economics is the branch of social studies that deals with study associated with the production, distribution, and consumption of goods and services. Economics explains the way people interact within the market to achieve some specific goals or interests.

Economics has many sub-branches. Let us discuss two such sub-branches

  • Micro-Economics: Micro-Economics is a branch of economics that deals with the studies of the behavior of the individuals as well as the firms in making different decisions associated with the allocation of the scarce resources and the interactions of the individuals with the firms and vice verse. In Simple words, microeconomics deals with the decisions taken on a much smaller scale like for example the decisions made by a customer at a store or the number of things that will be manufactured by a store. 

Microeconomics gives a detailed analysis of the free market economy with its millions of customers and producers who work together and decide about the allocation of various productive resources among different goods and services.

Microeconomics answers three main questions which are:

  1. Which goods can be purchased?

  2. In what way it can produce?

  3. From whom they should be purchased?

The importance of Microeconomics:

  1. Paves a way to analyze and frame various economic policies.

  2. This helps in a better understanding of the level of satisfaction demanded by the customers.

  3. It the most convenient way to analyze the various conditions of economic welfare.

  • Macro-Economics: Macroeconomics mainly focuses on general or large scale economic factors. They analyze economy-wide data which includes GDP (Gross Domestic Product), unemployment, interest rate, and national productivity.

The importance of macro-Economics are discussed below:

  1. It helps in the proper analysis of the economic system.

  2. Macro-Economics paves a way to formulate different economic policies.

  3. Macro-Economics helps in a better understanding of the Micro-Economics. The laws associated with Micro-Economics cannot be framed without proper knowledge about the aggregates which are a part of the Macro-Economics.

  4. With proper knowledge and understanding in Macro-Economics, the economic fluctuations can be easily controlled.

  5. One of the most critical aspects of Macro-Economics is that it provides a base to study and know the effects of inflation and deflation on the economy.

  6. Macro-Economics helps in the proper analysis of the National Income and social accounts.

  7. With proper analysis in Macro-Economics, the Economic Development of a country can be understood in a better way.

    Also read:  What are the branches of economics?

    Science and Education Courses

    SCQM - S M Nazmuz Sakib's Certificate in Quantum M...

    S M Nazmuz Sakib

    0 (0) New Course

    Quantum mechanics is a fundamental theory in physics that provides a description of the physical properties of nature at the scale of atoms and subatomic particles. It is the foundation of all quan...

    25 hrs 32.37 mins 2 Students Enrolled 142 Lectures

    $ 0.00

    Free Enroll Now

    Philosophy of Logic

    S M Nazmuz Sakib

    0 (0) New Course

    This course will help you think more clearly through many of life's dilemmas and difficult situations. Some logical fallacies you might be familiar with are: Ad hominem, begging the question, red...

    10 hrs 4.27 mins 6 Students Enrolled 22 Lectures

    $ 0.00

    Free Enroll Now

    Philosophy of Astrobiology: An introduction

    S M Nazmuz Sakib

    5.00 (2)

    Astrobiology, formerly known as exobiology, is an interdisciplinary scientific field concerned with the origins, early evolution, distribution, and future of life in the universe. Astrobiology cons...

    6 hrs 44.6 mins 28 Students Enrolled 12 Lectures

    $ 0.00

    Free Enroll Now

    Digital Logic Design

    RADEEP KRISHNA R

    5.00 (13)

    To introduce the theoretical and aspects of digital electronics, which is the back bone for the basics of the hardware aspect of computers and other modern electronic gadgets

    33.52 mins 111 Students Enrolled 4 Lectures

    $ 0.00

    Free Enroll Now
    View All
    Item added successfully. Go to cart for checkout.
    Accept Reject