What is the difference between Microeconomics and Macroeconomics?

The difference between Micro and Macroeconomics is simple to understand and the hint is in the name!

Microeconomics is the study of economics on a 'small' level: at an individual, firm and market level. This could involve examination of demand and supply models of a certain product or behaviours of individuals and firms and their effect on each other and the wider economy.

Macroeconomics on the other hand is the study of economics on a 'larger',wider level: issues that affect the economy of a nation as a whole. This could involve the study of for example inflation, unemployment and exports/imports.

Answered by Xiaoli M. Economics tutor

34252 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain how price and output are determined for a firm in a monopolistically competitive market, in both the short run and the long run


Can you explain the difference between joint demand and competitive demand?


Explain why, in theory, a perfectly contestable market results in an efficient allocation of resources


Explain using a diagram the price/output of a firm competing in a perfectly competitive market during the long run. Is this equilibrium point beneficial?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences