Q.Distinguish between Micro Economics and Macro Economics on any four bases.

The two branches differ mainly in the LEVEL at which they study the economy — individual units versus the whole economy — and this leads to differences in their focus, method and key variables.

Four bases of difference: (1) meaning/scope, (2) alternative name, (3) method, (4) key variables — set out in the table below.

Micro Economics and Macro Economics differ in the following ways (any four suffice):

1. Meaning/scope. Micro Economics studies the behaviour of individual economic units (a single consumer, firm or industry), whereas Macro Economics studies the economy as a whole through its aggregates.

2. Alternative name. Micro Economics is called Price Theory because it centres on price determination; Macro Economics is called Income Theory because it centres on the determination of national income.

3. Method. Micro Economics uses 'slicing' — examining the economy one unit at a time and holding the rest constant; Macro Economics uses 'lumping' — adding individual units into economy-wide totals.

4. Key variables. Micro Economics deals with individual prices, individual demand and supply, and a single firm's output; Macro Economics deals with aggregate demand and supply, the general price level, and national income.

A common shortfall is giving only vague, one-word contrasts ('small vs big') without the specific bases — examiners expect distinct labelled bases such as meaning, alternative name, method, and key variables, each with the micro and macro side stated.