Economics as a concept is not important only for those who are studying finance or economics, but economics is important for every other individual whether he or she is a doctor or an engineer or a businessman. Everyone uses economics in daily life and therefore one should know what exactly economics is, well in simple words economics is a study of how individuals and groups make decisions with limited resources so that they can satisfy their needs and wants.
Economics is divided into two parts or branches one is micro economics and other is macro economics, let’s see what are the differences between micro and macro economics.
1. While micro economics refers to study of economic behavior of individuals, families, or a company while macro economics refers to that branch of economics which deals with the economic behavior of the society or nation as a whole.
2. The scope of micro economics is limited as it deals at individual level, while the scope of macro economics is much wider and it studies things like inflation, unemployment, interest rate effect on economy and gross domestic product of an economy of the country.
3. Example of micro economics study is what will be the consequence of increase in salary of an individual will have on his or her purchasing power, while macro economics study what will be the consequence of higher inflation on growth of the economy or how rise in gross domestic product will help in generating employment opportunities.