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

33947 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Between 2010 and 2015 the average price of tea in the UK increased from £7.20 per kilo to £8.48 per kilo. Over the same period the quantity of tea purchased fell from 97 million kilos to 76 million kilos. Find the price elasticity of demand


How does business confidence affect the economic cycle? And why?


Evaluate the case for the introduction of subsidies for agricultural produce. (15 marks)


Evaluate the view that mergers always result in a lessening of competition


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