Distinguish between microeconomics and macroeconomics.
| Basis of difference | Micro Economics | Macro Economics |
| Meaning | Microeconomics is the study of economics at an individual, group or company level. | Macroeconomics, on the other hand, is the study of a national economy as a whole. |
| Focus | Microeconomics focuses on issues that affect individuals and companies. This could mean studying the supply and demand for a specific product, the production that an individual or business is capable of, or the effects of regulations on a business. | Macroeconomics focuses on issues that affect the economy as a whole. Some of the most common focuses of macroeconomics include unemployment rates, the gross domestic product of an economy, and the effects of exports and imports. |
| Example | An example of a microeconomic issue could be the effects of raising wages within a business. | where as in macroeconomics, a common issue is the effects of certain policies on the national or regional economy. |
Why do central problems of an economy arise? Explain the central problem of 'for whom to produce'?
What is opportunity cost? Explain with the help of a numerical example.
What is a market economy?
Give meaning of an Economy.
