Class 12 Macro Economics - Chapter Introduction to Macro Economics NCERT Solutions | What is the difference between microecon
What is the difference between microeconomics and macroeconomics?
The difference between microeconomics and macroeconomics are:
| Point of Difference | Microeconomics | Macroeconomics |
|---|---|---|
| Definition | It is a branch of economics that studies the Economic variables at an individual level like the households, the firms, the consumer etc. | It is a branch of economics that studies the economics variables of an economy as a Whole. |
| Deals with | It deals with how consumer or the producers make decisions depending on their given budget and other variables. |
It deals with how different economics sectors like households, industries and other government and foreign sectors make their decisions. |
| Method | The method of partial equilibrium (i.e. equilibrium is one market) is used. | The method of general equilibrium (i.e. equilibrium in all the markets, simultaneously) is used. |
| Variables | The major variables involved are prices, consumers demand, wages, rent, profit, firms, revenue, cost etc. | The major variables involved are aggregate demand, aggregate supply, inflation, unemployment, poverty, etc. |
| Theories |
Various theories studied are: 1. Theory of consumers behaviour and demand |
Various theories studied are 1. Theory of national income 2. Theory of money 3. Theory of general price level 4. Theory of employment 5. Theory of international trade |
| Popularised by | Alfred Marshal | Keynes |
More Questions From Class 12 Macro Economics - Chapter Introduction to Macro Economics
Popular Questions of Class 12 Macro Economics
- Q:-
What is marginal propensity to consume? How is it related to marginal propensity to save?
- Q:-
Explain why public goods must be provided by the government.
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Differentiate between balance of trade and current account balance.
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What are the four factors of production and what are the remunerations to each of these called?
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What is a barter system? What are its drawbacks?
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What is the difference between ex ante investment and ex post investment?
- Q:-
Distinguish between revenue expenditure and capital expenditure.
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What are official reserve transactions? Explain their importance in the balance of payments.
- Q:-
Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.
- Q:-
What are the main functions of money? How does money overcome the shortcomings of a barter system?
Recently Viewed Questions of Class 12 Macro Economics
- Q:-
Give the relationship between the revenue deficit and the fiscal deficit.
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Differentiate between devaluation and depreciation.
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What is High Powered Money?
- Q:-
Explain ‘Paradox of Thrift’.
- Q:-
Are fiscal deficits inflationary?
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‘The fiscal deficit gives the borrowing requirement of the government’. Elucidate.
- Q:-
From the following data, calculate Personal Income and Personal Disposable Income.
Rs (crore)
(a) Net Domestic Product at factor cost 8,000
(b) Net Factor Income from abroad 200
(c) Undisbursed Profit 1,000
(d) Corporate Tax 500
(e) Interest Received by Households 1,500
(f) Interest Paid by Households 1,200
(g) Transfer Income 300
(h) Personal Tax 500 - Q:-
What do you understand by ‘parametric shift of a line’? How does a line shift when its (i) slope decreases, and (ii) its intercept increases?
- Q:-
Net National Product at Factor Cost of a particular country in a year is Rs 1,900 crores. There are no interest payments made by the households to the firms/government, or by the firms/government to the households. The Personal Disposable Income of the households is Rs 1,200 crores. The personal income taxes paid by them is Rs 600 crores and the value of retained earnings of the firms and government is valued at Rs 200 crores. What is the value of transfer payments made by the government and firms to the households?
- Q:-
What is transaction demand for money? How is it related to the value of transactions over a specified period of time?
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