The key areas of microeconomics are demand, supply, elasticities, competition, and production costs. Macroeconomics, on the other hand, assumes that all forces will get to an equilibrium that is beneficial to all the players in the economy. Microeconomics engages in the study of the behaviors of individuals, firms, and households in a given area with regards to how they ‘make both ends meet.’ This branch touches on the marketing of goods and services and how individuals cope with their economic issues. As for the Macroeconomics, the main concepts applicable are taxation, GDP, economic growth rates, and employment, among others. Key Concepts Some of the main terms used in microeconomics are consumption, income, household, and markets. As for macroeconomics, policymakers and larger corporations are the ones that gain a lot. Applicability The key beneficiaries of the microeconomics concepts are investors and members of the households. They determine the direction that the entire economy takes thereafter. The deductions drawn from macroeconomics are however far-reaching. Impacts Any deductions drawn from microeconomics has a rather smaller sphere of influence. Thus, it looks into the policies and decisions that influence the direction taken by other players in the economy. Macroeconomics adopts a top-down approach. It focuses on the demand and the supply and several other forces that play out in the price levels. Approach Microeconomics adopts a bottom-up approach. Macroeconomics, on the other hand, analyzes the decisions that are made by countries and governments. Comparison Table Parameter of Comparison Microeconomics Macroeconomics Scope Microeconomics concerns itself decisions of individuals and business decisions. Microeconomics studies the income of an individual whereas macroeconomics studies about the national income.
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