What is Micro and Macro Economics

Well there’s no one universally accepted answer to the question “What is economics. But in simple basic language Economics is the study of how people choose to use resources or it can be defined as the study of how individuals and groups make decisions with limited resources as to best satisfy their wants, needs, and desires”.

Economics can be further be divided into two categories

1. Micro Economics – In simple words it is the study of economic behavior of individuals, families, company etc. So for example what will be the effect of rise in salary of an individual will have on his purchasing power or How does the change of a price of good influence a family’s purchasing decisions.

2. Macro Economics – It is a branch of economics that deals with the economic behavior of the society or nation as a whole for example how change in interest rates by central bank will affect the economy as a whole, so in that sense it is much broader in nature than micro economics

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