IGCSE Economics Paper-2: Specimen Questions with Answers 84 - 84 of 100
Passage
Micro economics is often called price theory or value theory. Macroeconomics perceives the overall dimensions of the economic affairs of a country.
Question 84 (3 of 5 Based on Passage)
Explanation
| S. no | Microeconomics | Macroeconomics |
1. | Microeconomics is the study of behavior of individual units’ consumers, firms, and resource-owners. | Macroeconomics is the study of the behavior of the whole economy. |
2. | Microeconomics is individualistic in approach | Macroeconomics is aggregative in the methodological approach |
3. | Microeconomics is concerned with the behavior of micro variables or micro quantities such as demand, supply, particular commodity price wages, etc. | Macroeconomics is concerned with the behavior of macro variables or macro quantities like, national income, price level, investment, savings, consumption in an economy etc. |
4. | It deals with the problem of pricing and income distribution. | It pertains to the problems of the size of national income, economic growth and general price level. |
5. | Microeconomics never uses aggregates relating to economy-wide total. Its scope is limited. | Macroeconomics uses aggregates which relate to the entire economy or to a large sector of the economy and when it considers industrial output, it refers to the whole output produced by the industrial sector. |