Tag: introduction to micro economics

Calculation of national income falls under the concept of macro-economics.Hence it is outside the concept of Micro economics.

The study of increase in money supply or general price or level of employment is the subject matter of macro economics. 

The term ‘Macro’ is derived from the Greek word 'Makro' meaning large. So Macroeconomics is that part of economics which studies the economic problems and issue that are on a large scale. It studies about the performance of the economy as a whole and not of any individual firm or business. It focuses on the study of problems like inflation, unemployment, poverty, etc.  

Ragnar Anton Kittil Frisch was a Norwegian economist . He coined the term micro economics and macro economics .Macro economics deals the economy as a whole. In micro economics , study of economics is done from an individual point of view.

Determination of national income is a subject matter of Macro Economics. National income refers to the total amount of money earned by an economy.

Level of employment, GDP growth, population growth, etc. are the subject matter of Macroeconomics. This is because macroeconomics deals with the issues of the economy which occur on a large scale like the ones mentioned. It takes into account the general economic factors to know about the performance of an economy. Macroeconomics includes regional, national and global economies. 

Micro economics is a field of economics that deals from an individual point of view. Therefore, unfavorable gender ratio is not a subject matter of micro economics as the economic activities of an individual is not affected due to this.

Economic growth, that is all over development of an economy and increase in GDP ,etc - these are the concepts of macro economics since it includes the economy as a whole. It does not deal with a particular unit of production .

Microeconomics
1. It is that part of economics which deals with the individual units of the economy. 
2. It takes into account the demand and supply of individual units. 
3. It aims to determine the price of a product using the factors of production.
4. Example: Individual income and Individual output.

Micro economics deals the study of economics from an individual point of view. General price level is a subject matter of macro economics. Macro economics deal with the economy as a whole.

Macro economics theory deals with the field of economy which studies an economy as a whole. It does not look from an individual's point of view. The problem of choice or the problem of allocation of resources is addressed by the the theories of macro economics.