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Microeconomics and Macroeconomics

Economics consists of two broad subjects areas. Microeconomics deals with individual markets and actors. (The prefix micro means “small”.) The market for wheat, the price of running shoes, the demand for restaurant workers, supply of engineers, and the effect of the gasoline tax on gasoline sales are all microeconomic subjects. Micro-economists answer such as these: Will raising the tax exemption for dependents cause families to have more children? How much will the price of orange juice increase when a spring freeze destroys half the orange crop in Florida? Is it more efficient (less costly) to build a road with many road workers using sophisticated earthmoving equipment? How many students will drop out when the university raises tuition by 25 percent? As you can see, microeconomics is concerned with very specific questions involving individual markets, firms, and consumers.
In contrast, macroeconomics deals with aggregates, or the sum total of actions in many separate markets. (The prefix macro means “large”) It focuses on the macro, or large, economic elements of the economy as a whole. Macroeconomics is concerned with how total output in an economy is determined, rather than the output of wheat, cars, or pizzas; with the average level of prices, rather than particular prices for fish or cat food or telephone service; and with total employment or unemployment, rather than the number of workers in the restaurant industry or in a particular McDonald’s franchise.
While there are more micro-economists at work, macro-economists get more of the headlines. They track the national (and world) economy, answering questions and making predictions about inflation (will it get worse or better?), unemployment rates, and how government might use its taxing and spending powers to prevent business recessions and promote economic growth.

Microeconomics - the part of economics that examines individual decisions and particular markets.

Macroeconomics – the part of economics that addresses aggregate questions such as the level of total national output, the level of total national output, the level of prices, unemployment, and economic growth