1st thing micro is small or tiny
And macro is big or wide
Micro economics definition and importance
Definition--"Microeconomics is that part of economic theory,which studies the behavior of individual units of economy"
Importance--
1--It gives real understanding about the individual unit : it tells us how consumers and producers in an economy take decision about the allocation of productive resources among goods and services in an small area.
2--Knowledge of infrastructure : infrastructure like( road,building) it is essential to have the knowledge of the infrastructural, functioning which is also done only in micro-analysis
3--Knowledge of reactive changes and effect : it studies the relative changes and effects of various individual units of economy. The determination of the relative prices of the various products and productive services is also done.
4--Clear evaluation of the Sources of the production : it explains the conditions of efficiency both in consumption and in production and departure from the optimum.
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Macroeconomics definition and importance
Definition-"microeconomics is that part of economic theory which studies the behavior of aggregates of the economy as a whole"
Importance--
1--Importance in planning : it analysis the chief determinents of economic development and various stages and processes of economic growth, giving an overall view the world economy. So after analysis we can plan various policies for general welfare of the whole economy.
2-- Useful in the distribution of sources : As we know macroeconomics is a wider concept so it is used in distribution of national sources by evaluating the overall sources available in the economy.
3-- Helpful in various contradiction : contradiction means(combination where one makes the other impossible). There is a lot of contradiction prevailing in the study of individual unit and the study of whole economy. So macro economics skip small contradicts so it makes easier to implement the step.
4-- Helpful in understanding microeconomics : Alone does not indicate any dimensional understanding of the whole. General features of the overall intra structural functioning under the macro approach have to be considered to understand the micro- economics.
And macro is big or wide
Micro economics definition and importance
Definition--"Microeconomics is that part of economic theory,which studies the behavior of individual units of economy"
Importance--
1--It gives real understanding about the individual unit : it tells us how consumers and producers in an economy take decision about the allocation of productive resources among goods and services in an small area.
2--Knowledge of infrastructure : infrastructure like( road,building) it is essential to have the knowledge of the infrastructural, functioning which is also done only in micro-analysis
3--Knowledge of reactive changes and effect : it studies the relative changes and effects of various individual units of economy. The determination of the relative prices of the various products and productive services is also done.
4--Clear evaluation of the Sources of the production : it explains the conditions of efficiency both in consumption and in production and departure from the optimum.
--------------------------------------------------------------------------------------------------------------------------
Macroeconomics definition and importance
Definition-"microeconomics is that part of economic theory which studies the behavior of aggregates of the economy as a whole"
Importance--
1--Importance in planning : it analysis the chief determinents of economic development and various stages and processes of economic growth, giving an overall view the world economy. So after analysis we can plan various policies for general welfare of the whole economy.
2-- Useful in the distribution of sources : As we know macroeconomics is a wider concept so it is used in distribution of national sources by evaluating the overall sources available in the economy.
3-- Helpful in various contradiction : contradiction means(combination where one makes the other impossible). There is a lot of contradiction prevailing in the study of individual unit and the study of whole economy. So macro economics skip small contradicts so it makes easier to implement the step.
4-- Helpful in understanding microeconomics : Alone does not indicate any dimensional understanding of the whole. General features of the overall intra structural functioning under the macro approach have to be considered to understand the micro- economics.
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