Skip to main content

Explain Micro and Macro approaches of the Economics Analysis

Explain Micro and Macro
Q) Explain Micro and Macro approaches of the Economics Analysis

Micro Economics:

The word “micro” means a millionth part. When we speak of micro-economics or the micro- approach, what we mean is that it is some small or component of the whole economy that we are analyzing.

For example, behavior or that of an individual firm or what happened in any particular industry. In microeconomics what we study is that price of a particular product or of a particular factor of production and not the general price level of the country.

In micro-economics we study the following issues:

1. Individual consumer’s behavior 
2. One product’s price 
3. One individual consumer’s demand and his income 
4. Study of the individual firm’s location, cost, revenue, and profit 
5. Remuneration of individual factor of productions.

Scope of Field of Study:

Price Theory: In Price Theory, two important economic factors- demand and supply are discussed with the help of these two factors. It is analyzed how the price of a commodity is to determined. 

Theory of Consumption Behavior: This theory deals with three main economic problems that how consumer can get maximum satisfaction from their limited spending. In this regard, the theory of Marginal Utility and Indifference Curves Theory are worth mentioning. 

Theory of Behavior of Firms: This theory guides various types of firms how they can grow under different business organization, maintain equilibrium through their output and price decision. 

Theory of Production: This theory deals with three important laws of returns or laws of cost.

You may also like


Macro Economics:

Macro-economics is concerned with aggregate and averages of the entire economy. Such as national income, aggregate output, total employment, total consumption, saving and investment, aggregate demand, aggregate supply, genera price level, etc In other words, in micro-economics we study how these aggregates and averages of the economy as a whole are determined and what causes fluctuations in them.

Macro-Economic deals also with how an economy grows. In other words, it analysis the chief determinants of economic development and various stages and processes of economic growth. This part of economics theory has been largely developed in the last three decades. 

Scope of Fields of Studies:
Macro-Economic deals with the problems of unemployment, economic fluctuations, inflation and deflation. It concerns with the effect of investment and total output, total income and aggregate employment. In monetary field, it studies the effect of the total quantity of money on the general price.


Popular posts from this blog

Free Download Notes XI & XII Commerce Notes & Book In Pdf

Free Download Notes XI & 1st Year Notes Download In Pdf XI Accounting Book  Economics Notes Pdf Free Download Urdu Notes for 1st Year (Class 11)  Another Urdu Notes For XI  Islamiat For XI  Principle Of Commerce 1st year XI POC Notes (Best) Server 01 XI POC ( Principle of Commerce ) Guess Paper Solved 2021 Free Download Notes  XII Commerce Notes & Book In Pdf XII Accounts Book With Solutions 2nd-year Urdu Notes Free Download Pdf XII English Notes Pdf 2nd Year English Notes Adam jee  2nd Year Commercial Geography  2nd Year Pak Studies Notes XII Pak Studies Notes In English Adam Jee XII Pak Studies Solved Paper XII Banking Notes (Shah Commerce) Another 2nd Year Banking Notes XII  CG Solved Papers Commerce Online Notes By Sir sultan hamid hussain (All credit goes to Sir Sultan) Server 01 Commercial Geography Notes In English By Sir Sultan Server 01 Commercial Geography Notes Notes In Urdu By Sir Sultan Server 01 XII Banking Notes Short Q

Questions And Answers The Count’s Revenge By J.H.Walsh

THE COUNT’S REVENGE (J.H.WALSH) Q: 1 What Arab custom is referred in the short play “The Count’s Revenge”? An Arab custom mentioned by the Countess of Morcerf to Albert and the Count of Morcerf when the count of Monte Cristo leaves their house without eating anything. The custom runs as “Never to eat food at the house of a deadly enemy”. She strongly believes that since the Count of Monte Cristo has a faith in that custom and thinks them to be his enemy, and hence not eat anything at their place.   Q: 2 What do you know about the reaction, plans or intention of Albert? Albert, the brave young son of the count of Morcerf, was deeply shocked by the disgrace of his father and family. As a man of honour, he showed severe emotional reaction to the unhappy incident. Albert made his mind to trace about the unknown enemy of his family and avenge the family honour. On his request, Beauchamp, a close friend of Albert, discovered the name of the enemy. It was Albert;s

English Essay Problems of Karachi

Problems of Karachi Karachi is the biggest city in Pakistan and one of the most thickly populated cities in the world. Its population has increased rapidly and accordingly has given rise to many social problems. People of this metropolis are becoming more and more concerned about solving these serious problems, some of which are discussed below. The ever-increasing rush of heavy traffic on the roads is resulting in heavy loss of human life. One day or the other, people suffer from accidents due to reckless driving. Some lose their vehicles and some go to the police. This is due to lack of civic sense in the citizens and violation of traffic rules. Traffic jams, road quarrels, untidiness and damage of public property are also the results of this problem. The government has not done any planning to control this situation in the past two decades. In the same manner, the government has never emphasized upon population distribution. As a result, slum areas are rapidly being built, wher

Short Questions Answers of The Prisoner of Zenda ~Drama Novel Prisoner of Zenda

 N OVEL Question 1)Tell in your own words how the first meeting came off between the two distant cousins? Answer) Rudolf leaves the inn one day as he is given an opportunity to stay at Jahan’s sister at Strelsau. Instead of going, he decides to walk through the forest and have a look at the castle of Zenda. He sits down in the forest to have some rest as well as smoke a cigar. After smoking his cigar, he unintentionally falls asleep. Shouts and sound of laughter wake him up. On opening his eyes, he sees two men standing near him. They are Fritz Von Tarlenheim and Colonel Sapt. They tell him that he looks exactly like their king except that he has a beard. At that moment King Rudolf appears. Rassendyll greatly surprises to see king Rudolf in the forest of Zenda. He gives a cry when he finds that Rudolf is just like him. Rudolf’s face and appearance are quite like his own. Rudolf’s height appears to be slightly less than his. Rassendyll bows respectfully before the king. In a happy m