Micro
Economics |
Macro
Economics |
Micro
is derived from Greek word Mikros which means individual. |
Macro
is derived from Greek word Makros which means whole. |
Micro
is that part of economics which studies individual behavior of units. |
Macro
is that part of economics which studies aggregate behavior of units. |
It
is also called Price Theory. |
It
is also called Income & Employment Theory. |
The
basic tools are demand & supply. |
The
basic tools are aggregate demand& aggregate supply. |
The
main focus is on allocation of resources. |
The
main focus is on National Income. |
It
works on Partial Equilibrium. |
It
works on General Equilibrium. |
Positive
Economics |
Normative
Economics |
It
studies: What is, what was, & what will be. |
It
studies: What is ought to be. |
It
does not give any judgments. |
It
gives judgments. |
It
does not provide any solution. |
It
provides solutions. |
Ex:
Population of India is growing. |
Ex:
Population of India should be controlled. |
CAPITALIST ECONOMY |
SOCIALIST ECONOMY |
MIXED ECONOMY |
It
is also called as Market economy. |
It
is also called as Centrally planned economy. |
-- |
The
word capitalist is made up of CAPITAL which means money. |
The
word socialist is made up of SOCIETY which means GROUP OF PEOPLE. |
-- |
In
this economy all means of production are owned by private sector. |
In
this economy all means of production are owned by public sector. |
In
this economy all means of production are owned by both public & private
sector. |
There
is no role of govt. in market. |
There
is no role of private sector in market. |
Both
sectors play their distributed roles. |
All
economic decisions are taken independently by market economy. |
All
economic decisions are taken by govt. |
All
economic decisions are taken by both sectors. |
Price
is determined by private sector. |
Price
is determined by public sector. |
Price
is determined by forces of demand & supply. |
Central
problems of economy are solved through Price Mechanism. |
Central
problems of economy are solved through planning authority. |
Central
problems of economy are solved by both sectors. |
The
basic objective is Profit Maximization. |
The
basic objective is public welfare. |
The
basic objective is economic growth. |
Prices
are relatively high. |
Prices
are relatively low. |
Prices
are normal. |
Social
welfare is ignored. |
Social
welfare is taken care of. |
Profit
maximization & social welfare both are taken care of. |
CLICK BELOW TO DOWNLOAD FREE ONLINE
NOTES
Attachment : Click here to download