Microeconomics is the general study of business decisions that individuals and business firms make regarding resource allocation and setting of prices for services and products. Microeconomics also has to take into account tax and government regulations of the country. It is based mainly on supply and demand and such other factors that affect price ranges in the economy. Microeconomics is the kind of field that would help companies maximise their capacity and productivity to make room for lower prices and becoming more competent in the industry.
Programs in microeconomics generally takes students through firm production, profit maximisation, consumer decision making and utility maximisation, the effect government has on individual markets, external factors and side effect of the market that would affect businesses, and individual market equilibrium.
On the other hand, macroeconomics is the study of the economy as a whole and industries entirely and not specific firms as in microeconomics. Microeconomics explores various economy related phenomena and factors such as Gross National Product and how it changes when unemployment arises, price levels, national income, growth rates of the economy, and such. Macroeconomics is the field that can directly affect a country’s capital account through an analysis of net exports of the nation.
Macroeconomics programs explore the cause of the ups and downs of the economy, the effect on economic health due to the monetary and fiscal policy, determination of interest rates, reasons why certain economies seem to rise and grow at a faster pace, the effect of sales tax, income tax and all other taxes on general prices.
But microeconomics and macroeconomics, having their vast differences in areas they deal with, are closely connected to each other; only with the presence of healthy business firms and companies, can there be an overall sound economy. So what area will you be specialising in? Whilst you explore the possibilities, you should have a look at some of the top postgraduate in economics programmes listed on Hotcourses India!