Economics FYBMM: Terms and concepts - Part 5: Micro And Macro Economics

Micro and Macro Economics:
These are two approaches to the study of Science of Economics. In micro economics we analyze the behavior of individual economic units such as individual consumer, producer etc. In macro economics we are concerned with the aggregates i.e. the behavior of the economy as a whole. 

Distinction between Micro and Macro Economics:

1. Unit of Study	Micro Individual	Macro Aggregate
2. Method	Slicing	Lumping
3. Subject Matter	Study of product & Factor pricing etc.	Study of National income, general level of prices, trade cycles etc.
4. Basis	Based on Independence	Based on inter-dependence
5. Advocated by	Alfred Marshall	J M Keynes
6. Vision	Worm’s eye view. Study of a tree	Bird’s eye view. Study of a forest as a whole.

What is true of an individual may not be true of for the economy as a whole. Hence the two approaches.