Difference Between Micro and Macro Economics
Micro and Macro economics, both are absolutely vital and a person is only half educated it he understand the one, while being ignorant of the other.
- Using micro approach, the individual units are studied, like, the study of a firm or an industry, whereas, using macro approach, the whole of the economy is studied, like national income, national investment etc.
- Under micro economics, a perishable individual, consumer or a firm is studied whereas in macro the imperishable (or undying) society is studied.
- Slow changes take place in a society whereas in an individual’s life, mostly quick changes take place.. On this basis quick changes take place in micro (individual) economics, whereas comparatively slow changes take place in macro (group) economics.
- According to Prof. J. K. Mehta, micro economics is like an open economy whereas, macro economics is like a closed economy because knowledge about-an individual person or a firm can be easily gained but a lot of time and problems will be faced in gaining knowledge about the entire society
- Sometimes, economic activities are changing from the point of view of an individual (micro) but are stable from the point of view of a group (macro). For example, it may be -possible that them is no change in the population of a country but the size of the families in that country getting bigger or smaller.
Even after the above differences it can be said that individual economic analysis (micro) and group economic analysis (macro) are two methods of the study of economic science. In the view of Prof Samuelson
There is not really any opposition between micro and macro, both are absolutely vital and a person is only half educated it he understand the one, while being ignorant of the other.