Macroeconomics and Microeconomics

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Microeconomics is the study of individual markets and sections of the economy.

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It focuses on specific sections rather than the economy as a whole.

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Characteristics of Microeconomics include studying single markets like milk, fabrics, and petroleum.

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It discusses the price of goods/services, individual demand, and supply.

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Decision makers in Microeconomics include consumers, firms, and government.

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Consumers decide on combinations of goods/services; firms decide on production; government decides on effective policies.

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Macroeconomics is the study of economic behavior in the entire economy.

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It examines decision making at a broader level rather than individual markets.

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Characteristics of Macroeconomics include examining government roles in economic growth and stability.

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It looks at fiscal, monetary, and supply-side policies.

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Decision makers in Macroeconomics include consumers, firms, and government.

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Consumers respond to macroeconomic conditions; firms adapt to economic changes; government combines policies to meet macroeconomic goals.