This document provides an overview of the key differences between microeconomics and macroeconomics. Microeconomics studies individual economic decision-making units like consumers, firms, and industries, while macroeconomics looks at aggregate economic measures for an entire economy, such as GDP, unemployment, and inflation. The document outlines several differences in their scope, tools, assumptions, theories, and limitations. It concludes that micro and macroeconomics are complementary aspects that together cover the whole economy of a country.

1. ECONOMICS PRESENTATION
TOPIC
DIFFERENCE BETWEEN MICRO AND MACRO ECONOMICS
SUBMITTED TO:
DR. ASHA MAM SUBMITTED BY:
MUKESH SINGH
ROLL-202010101110109
B.TECH CS -54

2. THE TERM ECONOMICS DEFINE AS
• The word 'economics' comes from two Greek words, 'eco' meaning home and
'nomos' meaning accounts.
• Economics is that branch of knowledge which studies the processes through
which the resource which are scarce in nature are allocated to satisfy the unlimited
wants of the people.
• In other words, the economics of the individual agent's decisions about resources
is referred to as microeconomics, while macroeconomics studies the interactions
in the economy as a whole.

3. WHAT IS MICRO AND MACRO ECONOMICS?
• Micro Economics talks about the actions of an individual unit, i.e. an
individual, firm, household, market, industry, etc.
• Macro Economics studies the economy as a whole, i.e. it assesses not
a single unit but the combination of all i.e. firms, households, nation,
industries, market, etc.

4. DIFFERENCE BETWEEN MICRO AND MACRO ECONOMICS
• Meaning:
• Microeconomics is the branch of economics that studies the
behavior of an individual consumer, firm, family is known as
Microeconomics.
• Macroeconomics is the branch of economics that studies the
behavior of the whole economy, (both national and
international) is known as Macroeconomics.

5. DIFFERENCE BETWEEN MICRO AND MACRO ECONOMICS
• Microeconomics deals with individual economic variables.
• Macroeconomics deals with Aggregate economic variables.
Business Application:
• Microeconomics is applied to operational or internal issue.
• Macroeconomics environment and external issues.

6. DIFFERENCE BETWEEN MICRO AND MACRO ECONOMICS
• Tools:
• Microeconomics is the demand and supply. And Macroeconomics
is the Aggregate Demand and Aggregate Supply.
• Assumption of Microeconomics:
• It assumes that all macro-economic variables are constant.
Assumption of Macroeconomics:
• It assumes that all micro-economic variables are constant.

7. DIFFERENCE BETWEEN MICRO AND MACRO ECONOMICS
• Microeconomics:
Theory of Product Pricing, Theory of Factor Pricing, Theory of
Economic Welfare.
• Macroeconomics:
Theory of National Income, Aggregate Consumption, Theory of
General Price Level, Economic Growth

8. DIFFERENCE BETWEEN MICRO AND MACRO ECONOMICS
• Scope:
• Microeconomics it covers various issues like demand, supply,
product pricing, factor pricing, production, consumption, economic
welfare, etc.
• Macroeconomics it covers various issues like, national income,
general price level, distribution, employment, money etc.

9. DIFFERENCE BETWEEN MICRO AND MACRO ECONOMICS
• Importance of Microeconomics:
• It is helpful in determining the prices of a product along with the
prices of factors of production (land, labor, capital, entrepreneur
etc.) within the economy.
• Importance of Macroeconomics: It maintains stability in the
general price level and resolves the major problems of the
economy like inflation, deflation, reflation, unemployment and
poverty as a whole.

10. DIFFERENCE BETWEEN MICRO AND MACRO ECONOMICS
• Limitations of Microeconomics:
It is based on unrealistic assumptions, i.e. In microeconomics it is
assumed that there is a full employment in the society which is not at
all possible.
• Limitations of Macroeconomics:
It has been analyzed that 'Fallacy of Composition' involves, which
sometimes doesn't proves true because it is possible that what is true
for aggregate may not be true for individuals too.

11. CONCLUSION OF MICRO AND MACRO ECONOMICS
• Every coin has two aspects:
• micro and macroeconomics are the two aspects of the same coin, also they cover the
whole economy of a country.
• Remember, this a important point that which makes them different is the area of
application.

12. THANK YOU