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
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What is marginal propensity to consume? How is it related to marginal propensity to save?
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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?
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Distinguish between revenue expenditure and capital expenditure.
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What are official reserve transactions? Explain their importance in the balance of payments.
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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
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In the above question, calculate the effect on output of a 10 per cent increase in transfers, and a 10 per cent increase in lump-sum taxes. Compare the effects of the two.
- Q:-
What are the main functions of money? How does money overcome the shortcomings of a barter system?
- Q:-
What are official reserve transactions? Explain their importance in the balance of payments.
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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?
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What role of RBI is known as ‘lender of last resort’?
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Discuss some of the exchange rate arrangements that countries have entered into to bring about stability in their external accounts.
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What is a barter system? What are its drawbacks?
- Q:-
Differentiate between balance of trade and current account balance.
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Would the central bank need to intervene in a managed floating system? Explain why.
- Q:-
What are the four factors of production and what are the remunerations to each of these called?
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