Microeconomics? Macroeconomics?

MICROECONOMICS vs MACROECONOMIC

Microeconomics is a branch in economics that examines the use of individual market or industry and the behaviour of individual decision making units such as business firms and households. Microeconomics includes the studies of individual markets such as the market for coffee, ice-cream, food and so on. Furthermore, it explains why the price of Apple iPhone is maintained at a certain level.

Then, it explains how the change of the price of McDonald’s burgers will affect the price of burgers in KFC as they’re the most well-known competitors in the market of fast food like we also have the competition between Pizza Hut and Domino Pizza. The prices change in any of their competitors like McDonald and KFC will definitely affect one another.

Macroeconomics is a branch of economics that deals with human behaviour and choices as they relate to an entire economy. It studies the aggregate or total demand for goods and services, output or inflation. For example, instead of looking on individual firm’s output, we look at the national output. There are many individual firms in each state in Malaysia such as Adidas so in terms of macroeconomics, the national output of Adidas is concerned. 

What is the difference between MICRO and MACRO? The difference is that as far as microeconomics concern is only individual market and individual decision making whereas in macroeconomics, it deals with human behaviour and choices which relate to the entire economy.