Micro and Macro Economics

MICRO ECONOMICS : It is that branch of economics which deals with the behaviour of individual economic units such as households, firms and individuals.

MACRO ECONOMICS : It is a branch of economics which is propounded by J.M.Keynes.He is known as father of macro economics.Macro economics is that branch of economics which deals with the functioning of economy as a whole.

SCOPE OF MACRO ECONOMICS :  

(I) PRODUCT PRICING : Theory of demand, Theory of supply, Equilibrium price and market equilibrium.

(II) FACTOR PRICING : Rent, wages,interest,profit
(III) MARKET: perfect competition,imperfect competition,oligopoly,monopoly
(IV) ECONOMIC WELFARE

SCOPE OF MICRO ECONOMICS : 

(i) Theory of income

(ii) Theory of employment

(iii) Economic growth

(iv) International trade

(v) General price level : inflation, deflation

(vi) Public finance

INTERDEPENDENCE OF MICRO AND MACRO ECONOMICS :(I) Micro and Macro economics study is complementary to each other .They are not contradictory but supplementary to each other. The study of micro economics is helpful in the study of macro economics and macro economics is also vital for the study of micro economics.

(II) Basic goal of both micro and macro economic theories is the same i.e the maximization of material welfare of the people and the entire economy.

QUESTIONS : 

1. Define Micro economics (2)

2. Define Macro economics (2)

3. Differentiate between micro and macro economics . (6)

4. Give the interdependence of micro and macro economics .(2)

5. Give any two variables of Micro economics.(2)

6. Give any two variables of macro economics.(2)

7 Which branch of economics deal with broad economic aggregates ? (2)

8 Who is known as father of macro economics? (2)

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