Question

Explain the difference between the fields of microeconomics and macroeconomics and give examples of the type of questions that each addresses.

Answer 1

Microeconomics is the study about individual behaviour and firms in making decisions regarding how to allocate scare resources and how to maximise firms total profit.Microeconomics is a small branch of an economy.it talks about only individual behaviour of consumer and firm.example of microeconmoics are consumer demand theory, production theory,opportunity cost, cost of production theory etc.

microeconomics questions -

In microeconomics questions are asked like what goods and services produce ,how much of each goods and services are produced, How to produce each quantity of goods,who owns and control the factor of production

while macroeconomics talk about performance ,structure and behaviour of entire economy.it is sum total of individual behaviour and firms decsion regarding impact of this in overall economy.Example of macroeconomics are unemployment ,interest rate,inflation ,GDP etc.macro economics looks at overall picture of economy.its impact is also on a large side.

Example of question asked in macroeconomics-

What causes unemployment,what is the reason of inflation,what creates economic growth.