NOTES

Ans.
Microeconomics studies particular markets, and segments of the economy. It looks at issues such as consumer behavior, individual labor markets, and the theory of firms in order to understand as to how decisions are made in time of scarcity and how they affect the larger economic scenario. Hence Micro economics concerns itself with:
i.   Individual labor markets – e.g. demand for labor, wage determination
ii.  Externalities arising from production and consumption.
iii. Supply and demand in individual markets iv.  Individual consumer behavior. e.g. Consumer choice theory Macro economics on the other hand examines the whole economy. It looks at 'aggregate’ variables, such as aggregate demand, balance of payments, poverty, employment,  national output and inflation.
In nutshell  Macro economics deals with
i.  International trade and globalisation
ii. Reasons for differences in living standards and economic growth between countries.
iii. Government borrowing
iv. Monetary / fiscal policy. e.g. what effect does interest rates have on whole economy?
v. Reasons for inflation, and unemployment
vi. Economic Growth