Why Micro Economics is a Price Theory And Macro Economics is an Income Theory

Micro Economics is a Price Theory as it is concerned with the consumer behaviors who buys goods by comparing price’s choice of different products with his own satisfaction or utility, or with the producer’s behavior who is producing particular products of different prices at the same quality. For example, a consumer compares the price and quality of substitute products i.e., companies provide the same products with different prices and quality like Company A produces ice cream and Company B also makes ice cream with different prices and quality can attract consumes’s behaviors and attract to buy due to lower prices or better quality.

Macro Economics An Income Theory

In Macro Economics, we study the income distribution, employment level, output level and price level as an aggregate. As we see total of income i.e., National Income, aggregate output, aggregate employment and unemployment level and General Price Level (Inflation Rate) of the total of factors of productions produced in a country.