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

34109 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain price elasticity of demand and how firms can exploit this.


What would be the economic impacts of a decrease in the tax rate for all tax brackets? Use the idea of aggregate demand your answer.


What are Consumer Surplus and Producer Surplus?


Explain a few problems the UK economy has endured or is expected to endure as a result of the Brexit Referendum.


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