Q.Distinguish between Microeconomics and Macroeconomics.

Microeconomics and macroeconomics look at the same economy through two very different levels of magnification.

The terms microeconomics and macroeconomics come from the Greek mikros (small) and makros (large), introduced by Ragnar Frisch in 1933. Microeconomics studies the behaviour of individual economic units — a single consumer, household, firm or industry — and how the price of a single good or factor is determined; it is therefore called Price Theory and covers demand, supply, consumer behaviour, production, cost and market forms. Macroeconomics studies the economy as a whole in terms of aggregates — national income, the general price level, aggregate demand and supply, and total employment; it is called Income Theory or Aggregate Economics, and expanded rapidly after Keynes' General Theory (1936). The two differ in their unit of study (individual vs whole economy) and central problem (price determination vs national income/employment determination), but they are complementary — understanding Maharashtra's own economy, for instance, needs both a microeconomic view of individual farms and firms and a macroeconomic view of the state's overall output and employment.

Students often give only the definitions without concrete points of difference (unit of study, central problem, example), which examiners expect in a tabular or point-wise answer.