The Difference between Microeconomics and Macroeconomics

When someone says economics, a majority of the people think about money. However, the area of economics is way bigger than the concept of monetary transactions. If you are a student, you are likely to require international economics assignment help quite often. But before you get into the advanced section of international economics, you need to understand the basics – which involve microeconomics and macroeconomics.

In today’s date, students have access to a number of free tools to develop quality assignments on the topics of economics. However, if they don’t have a clear idea of the difference between microeconomics and macroeconomics – it can be a huge problem for them. This blog offers a clear idea about both the classifications of economics.

•    Microeconomics:

This branch of economics deals with the behaviour of a single unit. The single unite can be an organisation or an individual. In microeconomics, you need to study the market behaviour of the unit in order to improve the decision making process. This field also allows you to boost your knowledge of various elements influencing the choices of individual buyers and sellers.

•    Macroeconomics:

Macroeconomics deals with the decision making the process of a large entity such as the national economy. In this field, you need to evaluate elements such as the collective supply and demand of goods in order to determine the price of goods, GDP, inflation and other critical issues.

The difference between microeconomics and macroeconomics
Microeconomics    Macroeconomics

The study of Microeconomics deals with the behaviour of the individual unit.    The study of Macroeconomics deals with the behaviour of the economy as a whole.

This branch of economics is often referred to as ‘Price theory’.    This branch of economics is termed as ‘Income Theory’.
It focuses on much smaller issues that affect an individual or company—for example, issue like opportunity cost, demand and supply etc.    It focuses on the major concerns that affect the entire country like inflation, unemployment, price etc.

Here, impractical assumptions are made.    Here, ‘Fallacy of Composition’ is involved. The things that are true for aggregate may not necessarily be true for an individual.

Hopefully, now you have the basic understanding of these two major branches of economics. As you go on to study the more advanced level of economics, you will have to learn about more sub-categories to understand the issues regarding international economics.