The Total solution for NCERT class 6-12
Points of Difference
Microeconomics
Macroeconomics
1
Study matters
It studies about individual economic units like households, firms, consumers, etc.
It studies about an economy as a whole.
2
Deals with
It deals with how consumers or producers make their decisions depending on their given budget and other variables.
It deals with how different economic sectors such as households, industries, government and foreign sector make their decisions.
3
Method
It uses the method of partial equilibrium, i.e. equilibrium in one market.
It uses the method of general equilibrium, i.e. equilibrium in all markets of an economy as a whole.
4
Variables
The major microeconomic variables are price, individual consumer’s demand, wages, rent, profit, revenues, etc.
The major macroeconomic variables are aggregate price, aggregate demand, aggregate supply, inflation, unemployment, etc.
5
Theories
Various theories studied are:1) Theory of Consumer’s Behaviour and Demand2) Theory of Producer’s Behaviour and Supply3) Theory of Price Determination under Different Market Conditions
Various theories studied are:1) Theory of National Income2) Theory of Money3) Theory of General Price Level
4) Theory of Employment
5) Theory of International Trade