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ASM DEGREE & PG
COLLEGE
FOR WOMEN
POWER POINT PRESENTAION
ON
PRESENT ED
BY
G MADHURI
M.COM (CA ) 2 SEM
H.NO:22010C3004
Marketing
Micro economics
The prefix 'micro' is derived from
Greek word 'mikros', meaning
small.
“Micro economics studies the
economic behaviour of
individual economic units and
individual
economic variables.”
The study of economic
behaviour of the households,
firms and industries forms the
subject- matter of micro
economics.
Micro economics is concerned
with economic activities of
individual economic units as
consumers, resource owners
and business firms.
It explains how these
individuals as consumers or
households, as resource
owners and as producers
play their part in the working
of the whole economic
system.
It revolves around the
interaction of consumers and
producers in markets.
Product
market:
Theory of
demand
Theory of
production
Theory of cost
Theory of
product
pricing
Factor
market:
Theory of
distribution
Welfare
economics.
Subject-Matter of Micro Economics
Micro economics is concerned with
Determination of product prices
Determination of factor prices and their quantities in
the individual markets
The allocation of resources among various firms and
industries.
It deals with the action and interaction of individual
markets-product and factor markets.
Thus, micro economics deals with the
The prefix 'macro' is
derived from the Greek
word 'makros' meaning,
'large'.
Macro economics is the
study of the economy as a
whole.
Macro economics " deals
with the functioning of the
economy as a whole.”
Macro economics
"Macro economics deals not with
individual quantities as such but
with aggregate of these
quantities; not with individual
incomes but with national
income; not with individual prices
but with the price level; not with
individual outputs but with the
national output."
- Prof. Boulding
Subject-Matter of Macro Economics
Theory of National Income
Theory of Output and Employment
Theory of General Price Level
Theory of Economic Growth
Theory of International Trade
Theory of Money
Microeconomics
It deals with an individual's economic
behavior.
It deals with the pricing of a particular
commodity in an industry.
Price is the basic parameter of micro
economics.
Study of micro economics is important
for resource utilization, public finance,
and for taking business decisions.
It deals with aggregate economic
behavior of the people in general.
It deals with the general price level in
the economy, National income
accounting, etc.
Income is the basic parameter of
macro economics.
Study of macro economics is
important for formulation of
economic policy of the whole nation.
Macroeconomics
The concepts of micro-economics
are independent concepts.
The concepts were popularized by
the famous Alfred Marshall.
These concepts have more
theoretical value.
Bottom up view of the economy
The concept of macro
economics are interdependent
on one another.
The concepts were popularized
by the famous Lord J.M. Keynes.
These concepts have more
practical value.
Top down view of the economy
Microeconomics Macroeconomics
Interdependence of Microeconomics &
Macroeconomics
Prof. Paul A. Samuelson
has aptly remarked,
"There is really no
opposition between micro
and macro economics.
Both are vital. You are
less than half-educated if
you understand one
while being ignorant of
the other."
Macro economics
deals with 'big'
issues of economic
life but the entire
economy is made
up of its parts.
Basic goal of both
micro economic and
macro economic
theories is the
maximisation of
material welfare of
the people and the
entire economy.
THANK YOU

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MACRO AND MICRO.ppt

  • 1. ASM DEGREE & PG COLLEGE FOR WOMEN POWER POINT PRESENTAION ON PRESENT ED BY G MADHURI M.COM (CA ) 2 SEM H.NO:22010C3004 Marketing
  • 2. Micro economics The prefix 'micro' is derived from Greek word 'mikros', meaning small. “Micro economics studies the economic behaviour of individual economic units and individual economic variables.” The study of economic behaviour of the households, firms and industries forms the subject- matter of micro economics.
  • 3. Micro economics is concerned with economic activities of individual economic units as consumers, resource owners and business firms. It explains how these individuals as consumers or households, as resource owners and as producers play their part in the working of the whole economic system. It revolves around the interaction of consumers and producers in markets.
  • 4. Product market: Theory of demand Theory of production Theory of cost Theory of product pricing Factor market: Theory of distribution Welfare economics. Subject-Matter of Micro Economics Micro economics is concerned with
  • 5. Determination of product prices Determination of factor prices and their quantities in the individual markets The allocation of resources among various firms and industries. It deals with the action and interaction of individual markets-product and factor markets. Thus, micro economics deals with the
  • 6. The prefix 'macro' is derived from the Greek word 'makros' meaning, 'large'. Macro economics is the study of the economy as a whole. Macro economics " deals with the functioning of the economy as a whole.” Macro economics "Macro economics deals not with individual quantities as such but with aggregate of these quantities; not with individual incomes but with national income; not with individual prices but with the price level; not with individual outputs but with the national output." - Prof. Boulding
  • 7. Subject-Matter of Macro Economics Theory of National Income Theory of Output and Employment Theory of General Price Level Theory of Economic Growth Theory of International Trade Theory of Money
  • 8. Microeconomics It deals with an individual's economic behavior. It deals with the pricing of a particular commodity in an industry. Price is the basic parameter of micro economics. Study of micro economics is important for resource utilization, public finance, and for taking business decisions. It deals with aggregate economic behavior of the people in general. It deals with the general price level in the economy, National income accounting, etc. Income is the basic parameter of macro economics. Study of macro economics is important for formulation of economic policy of the whole nation. Macroeconomics
  • 9. The concepts of micro-economics are independent concepts. The concepts were popularized by the famous Alfred Marshall. These concepts have more theoretical value. Bottom up view of the economy The concept of macro economics are interdependent on one another. The concepts were popularized by the famous Lord J.M. Keynes. These concepts have more practical value. Top down view of the economy Microeconomics Macroeconomics
  • 10. Interdependence of Microeconomics & Macroeconomics Prof. Paul A. Samuelson has aptly remarked, "There is really no opposition between micro and macro economics. Both are vital. You are less than half-educated if you understand one while being ignorant of the other." Macro economics deals with 'big' issues of economic life but the entire economy is made up of its parts. Basic goal of both micro economic and macro economic theories is the maximisation of material welfare of the people and the entire economy.