Origin The term ‘Micro’ was derived from Greek word “Mikros”. Its meaning is small therefore microeconomics deals with individual units of the economy (individual economic activities). The term ‘Macro’ was derived from Greek word macros means ‘Large’ or ‘Big’. Therefore macroeconomics deals with aggregate economic activities. Definition Microeconomics is defined as that branch of economics which deals with the study of individual economic activities. Macroeconomics is defined as that branch of economics which deals with the aggregate study of economic activities i.e. study as a whole. Study Microeconomics studies microeconomic variables such as consumer and producer’s behaviour, pricing of goods/services, demand for and supply of commodity etc. Macroeconomics studies economics as a whole. In other words, it studies macroeconomic variables such as national income, aggregate demand and supply, national employment, poverty level etc. Objectives The main objective of microeconomics is t...

Since microeconomics and macroeconomics are the two approaches to the study of the same economy, their study is not conducted separately in two watertight compartments. The distribution between microeconomics and macroeconomics is made to help us understand behavior of economic units both from micro-perspective and macro-perspective. Moreover, the distinction drawn between microeconomics and macroeconomics is just to emphasize that the knowledge of both microeconomics and macroeconomics is essential through understanding of economics activities in an economy. In fact, the basic goal is the same for both branches of economics; the social welfare maximization. Thus, the microeconomics and macroeconomics are interdependent. The existence of the differences between microeconomics and macroeconomics does not imply that they are independent. In fact, macroeconomic theory has a foundation in microeconomic theory and microeconomic theory has a foundation in macroeconomic theory, i . e ., the...