Economics Study Materials

Microeconomics and Macroeconomics

Microeconomics and Macroeconomics
Written by Sonia Paruthi

Let’s study what is microeconomics and macroeconomics…

  • Definitions of Microeconomics and Macroeconomics :
  • Microeconomics: The study of how consumers, business and industries collectively determine the quantity of goods and services demanded and supplied at different prices.
  • Macroeconomics: The study of big picture issues in an economy including competitive behavior among firms, the effect of government policies and overall resource allocation issues.

 

MICROECONOMICS  MACROECONOMICS 
  • Microeconomics  is the study of small units such as individuals,firms and industries.
  • eg: supply an demand in specific markets, production costs,labor markets.
  • Macroeconomics is the study of large economy as a whole or economic aggregates.
  • eg: economic growth, government spending, inflation , unemployment, international trade.
  • it deals with the decision making of single economic variables such as demand price,consumer price,etc.
  • it deals with average and aggregates of the entire economy such as national income, aggregate output,aggregate savings,etc. 
  • it is narrow in scope and interprets the small constituents of the entire economy.
  • it has a wide scope and interprets entire economy of country as a whole.
  • it is also known as the price theory because it explains the process of economic resources allocations on the foundation of relative prices of several goods and services.
  • it is also known as income theory because it explains the changing levels of national income of an economy during a period of time.
  • it deals with the flow of various factors of production from a single owner to a single user of those resources.
  • it deals with the circular flow of income and expenditure between different sectors of the economy.
  • it helps in developing policies appropriate resources distribution at firm level.
  • it helps in developing policies appropriate resources distribution at economy level such as inflation unemployment level.

 

link to some questions asked in SSC is given below:

SSC CGL portal economics questions

HOPE IT HELPS!

some more study material for economics is found here

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Sonia Paruthi

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