Difference Between Micro and Macro Economics You Need To Know

“From each according to his ability, to each according to his needs.” - Karl Marx

 What started as a mere calculation of utility based on a human need has now become a conversation about bulls and bears, widening its career scope by paving the way to several job opportunities, stock markets and opening up economies. The study of economics deals with the changing aspects of money, trade, demand and supply. 

Understanding the difference between micro and macro economics is a constant topic of discussion among economists and academicians. 

Research states that Commerce degrees are a popular choice, comprising about 13% of undergraduate enrollments in the year 2023-2024.

What Is Economics As A Discipline and why is it in demand?

The discipline of Economics is a study that comprises choices and allocating resources to the needs and necessities of the market. It also emphasises how individuals, businesses, and governments function according to pre-defined rules and regulations by the law.

Economics is divided into two important sections, micro economics and macro economics. 

●       Macroeconomics deals with the behaviour of the aggregate economy. John Maynard Keynes is recognised as the founder of macroeconomics, making an entire study called “The Keynes School Of Thought.”

●       Microeconomics focuses on individual consumers and businesses. The foundation of this branch of economics is guided by rules, a set of compatible laws and theorems, instead of an observed, detailed and empirical analysis.

Why is it in Demand?

●       The world loves numbers and data, and Economics as a branch of study gloats in it. Due to the booming increase in the demand for high-quality data, analysis and the never-ending thirst for knowledge.

●       It provides qualitative study, which is a deciding factor in aspects like public administration, policy-making, and finance which become critical elements in strategic decision-making requisites.

●       The study of Economics is relevant in discussing the burning problems of the world like climate change, mental health, inequality, poverty and sustainable living. This helps students stay inspired and go after finding solutions to contribute to societal changes.

●       With the boom in Generative AI, the role of economics and its relevance in tech and machine learning, and big data is becoming the new normal and is redefining all our norms and challenging several industries and disciplines. 

What Are The Major Differences Like?

Here are a few of the major difference between micro and macro economics listed for clarity:

Economics is fast-growing, in its discipline and as aspiring graduates, whether you match the vibe with microeconomics, like segmenting problems into smaller blocks, or a macroeconomics Flexer, that showers the economy with that tad-bit a glow. Do remember, through all the tough times the economy is always trending and microe conomics and macro economics always become the show-stopper, and your wallet might thank you later. 

In looking at the study of economics in the purview of a circus, the invisible hand is like the ultimate circus master, the one listing down our moves and being the guide to all our choices.

Irrespective of whether we're dealing with microeconomics (think pizza slices) or macroeconomics (the whole pizza shop). The difference between micro and macro economics? Micro's all about individual slices, like prices and consumer choices, while macro looks at the bigger picture: inflation, GDP, and why pizza costs more this year, or how are the toppings tossed across the slices. 

FAQ’s

What is GDP in economics?

GDP, or Gross Domestic Product, is the total monetary value of all goods and services produced within a country over a specific period. It's a key indicator of a country’s economic health and helps measure economic growth.

Who is called the father of economics?

Adam Smith, a Scottish philosopher and economist, is often regarded as the "father of economics" for his foundational work in economic theory, especially in his book The Wealth of Nations.

What are micro and macroeconomics?

Microeconomics focuses on individual and business decisions, such as how households manage budgets or how prices are set. Macroeconomics, on the other hand, studies the broader economy, including national policies, inflation, and employment trends.

Who is the father of Indian economics?

Dr. Dadabhai Naoroji is considered the "father of Indian economics" due to his pioneering work in highlighting economic challenges under British rule and advocating for Indian welfare.

What is the difference between micro and macroeconomics

Microeconomics studies individual choices and markets, such as pricing and consumer behaviour, while macroeconomics looks at national and global economic trends, including inflation and growth. Both are essential for understanding different aspects of the economy.