Question 33 of 41
Q.Distinguish between the following.
Micro Economics and Macro Economics.
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2026Subjective· 2mImportance★★★★★
80% · 33/41 Questions
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Start your 14-day free trial to unlock the full solution →Microeconomics looks at the small individual units of the economy one at a time; macroeconomics looks at the economy in total. They differ in scope, method of study, central problem and the variables they examine.
The word 'micro' comes from the Greek mikros (small) and 'macro' from makros (large). Prof. Ragnar Frisch introduced both terms in 1933. Both branches are complementary — together they give a complete picture of the economy — but they study it from different angles.
| Basis | Micro Economics | Macro Economics |
|---|---|---|
| Meaning | Study of the behaviour of individual economic units (a consumer, a firm, a single price) | Study of the economy as a whole (aggregate variables) |
| Method | Slicing method (splits the economy into small parts) | Lumping method (aggregates the parts) |
| Central problem | Price determination and allocation of resources | Determination of income and level of employment |
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