Unemployment: This factor depicts the measurement of unemployment of people in the country and the rate at which people look for work or job is the unemployment rate.It represents the sum of profits, wages, interest rents and pension payments to citizens of the country. National Income: It is an economic indicator that determines the correct picture of the economy and purchasing ability of people in the nation. GDP is the fiscal value of all the finished goods and services rendered within a country’s boundaries. Gross Domestic Product (GDP): As one of the prime indicators, it is used to measure the strength of a nation’s economy.Some of the major factors you will get to study in Macroeconomics are: The key point of difference between Micro and Macro Economics is that Microeconomics stays limited to the individual level and Macroeconomics peruses the economy as a whole. Further, you will also get to learn about the causes and effects of changes in national income, unemployment, growth rate, and price levels. Further, the Class 12 Macroeconomics syllabus essentially explores the process of generating Gross Domestic Product (GDP). At the school level, Macroeconomics and Microeconomics are studied under the Commerce and Arts stream subjects. This comprises different types of the economy including national, territorial, and world economies. The word ‘Macro’ is derived from the Greek word ‘Makro’ (meaning “large”) and combining it with economics, this branch deals with the production, performance, behaviour, structure, and decision-making of an economy as a combination of all entities, rather than individual firms or markets. Labor Economics: This concept of economics encompasses the basic principles of workers and employers, and examines the pattern and model of employment, wages and income.Įconomics Class 10 What is Macroeconomics?.Costs of Production: This principle determines the cost of goods and services that is restricted by the cost of the supplies utilised during the production phase.This produces an economic balance between supply and demand. Under this method, suppliers give the same rate or price as demanded by buyers or customers in a perfectly competitive market. Demand, Supply, and Equilibrium: Prices are decided by the principles of supply and demand.Production Theory: This theory postulates the study of how goods and services are manufactured or produced.The various key principles it comprises are: Before delving deeper into the difference between Micro and Macro Economics, let’s first explore the key components of Microeconomics. It studies the pattern of demand and supply as well as the determination of output and price in individual markets. Further, it focuses on different aspects of how decisions are made based on the allocation of limited resources. Microeconomics is a branch of economics that studies the behaviour of individuals and businesses. Through this blog, we will explore the key points of difference between Micro and Macro Economics.Ĭheck Out: Economics for UPSC What is Microeconomics? Macroeconomics looks at the wider picture by factoring in the economy and government decisions of a country as a whole. Microeconomics focuses on how businesses and individuals make decisions regarding prices, allocation of resources, budgeting, etc. As a prominent branch of Social Science, Economics mainly studies how society uses limited resources as well as the production, consumption and distribution of goods Economics is divided into two branches, namely, Macroeconomics and Microeconomics.
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