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Homework answers / question archive / A basic difference between microeconomics and macroeconomics is that microeconomic examines the choices made by individual participants in an economy, whereas macroeconomics considers the economy's overall performance

A basic difference between microeconomics and macroeconomics is that microeconomic examines the choices made by individual participants in an economy, whereas macroeconomics considers the economy's overall performance

Economics

A basic difference between microeconomics and macroeconomics is that microeconomic examines the choices made by individual participants in an economy, whereas macroeconomics considers the economy's overall performance. Why?

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Microeconomics and macroeconomics are two sub-parts of economics.

Micro means small and macro means large.

Microeconomics focuses on the behavior of an individual and a single entity in the economy. 'I' in microeconomics is referred to as an individual because microeconomics is concerned about the issues related to a single individual and a firm. The main issues which are studies in microeconomics are consumer behavior, producer behavior, and market structure.

Macroeconomics studies the behavior of a whole economy in a country. 'A' in macroeconomics is referred to as aggregate because macroeconomics is the study of the aggregate behavior of individuals and firms. It focuses on issues related to a whole country such as economic growth, inflation, recession, unemployment, and many more.