This document provides an overview of microeconomics and macroeconomics. It defines microeconomics as the study of individual economic units and their behavior, while macroeconomics examines the overall economy in terms of aggregates like total output, income, savings, and inflation. The document notes that microeconomics analyzes specific markets and prices, while macroeconomics considers concepts such as GDP, unemployment, and economic growth on a national scale. It concludes that both approaches are useful and interconnected, with macroeconomics providing a broader perspective of the entire economy.

1. Submitted To:
Mr. Abrar Ahmed Apu
Assistant Professor
Department of Textile Engineering
Daffodil International University
Submitted By:
Md. Robiul Islam
ID NO : 153-23-4464
Section : A(Evening)
Department of Textile Engineering
Daffodil International University

2. MICRO ECONOMICS
&
MACRO ECONOMICS

3. MICRO ECONOMICS
Micro has been derived from GREEK word “MIKROS” which
mean small.
It is a study of the individual units of economic system
In other words a small part of economy & not the whole
economy.

4. DEFINATION OF MICRO ECONOMIC
Prof. Mac.cannel: “micro economics is study of the
specific economic units and a detailed consideration of
the behavior of these individual units”.

5. SUBJECT MATTER
It deals with determination of product prices and factor of
price.
In short , it is concerned with the determination of price
like theory of production , theory of rent , wages, Interest,
profit & economic welfare.
It also known as PRICE THEORY.

6. MERITS
A worm’s eye view of a small specific unit.
Achieve maximum output with minimum costs.
It is helpful for macro economic studies.

7. LIMITATIONS
It does not give the correct pictures of the working of the
economy.
It does not provide solution to certain economic problems.
The area of study covered by it is limited .

8. MACRO ECONOMICS

9. MEANING
Macro has been derived from the Greek word “MACROS”
which means LARGE
Macro economic is the study of large part of the economy i.e.
The whole economy.
The study of economic behavior of the economy of the
economy as a whole & not the individual economic units of the
economy.

10. DEFINATION
Prof. Boulding: “Macro economics deals not only with
individual quantities but with the aggregates of these
quantities , not with the individual income , but with
national income , not with individual prices , but with
prices level , not with individual outputs but with the
national output”.

11. SUBJECT MATTER
It deals with total consumption, total savings, total
investment, total output, total or national income, inflation
& deflation economic growth, etc.
In other words it is concerned with the analysis of income
& employment in the economy as a whole.
Theory of income & employment.

12. MERITS
A bird’s eye-view of the entire economy.
Macro economy is more useful in solution to economy
problems.
It is quite helpful in formulation of GOVT. Economic
policies.
Study of macro economic is useful to micro economic
studies.

13. LIMITATIONS
The study of individual units becomes more useful
than study of aggregates.
It is useful for develop countries for solving their
problems but less useful or undeveloped country.

14. Moving from Micro to Macro
 If we look at a simple supply and demand diagram for motor cars. Microeconomics is
concerned with issues such as the impact of an increase in demand for cars.
 This micro economic analysis shows that the increased demand leads to higher
price and higher quantity.

15. Macro economic analysis
 This looks at all goods and services produced in the economy.
 The macro diagram is looking at Real GDP
 (which is the total amount of output produced in the economy)
 instead of quantity.
 Instead of the price of a good, we are looking at the overall
 price level (PL) for the economy. Inflation measures the annual % change in the aggregate price
level.
 Instead of just looking at individual demand for cars, we are looking at aggregate demand (AD) –
total demand in the economy.
 Macro diagrams are based on the same principles as micro diagrams; we just look at Real GDP
rather than quantity and Inflation rather than Price Level (PL)

16. CONCLUSION
It is true that macro economic is more realistic and more
useful than micro economic. Both the approaches are inter-
related inter-dependent & complementary to each other.

17. THANK YOU
FOR
YOUR ATTENTION