Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Difference Between Microeconomics And Macroeconomics

Economics ,
Difference Between Microeconomics And Macroeconomics
The major dissimilarities between microeconomics and macroeconomics can be highlighted as follows:
1. Introduction
Microeconomics: A branch of economics that studies the economic tendencies or behavior of individual, unit or a group.
Macroeconomics: Branch of economics that deals with the economic behavior at national and international level.

2. Concern With

Microeconomics: It is concerned with individual variables such as individual market, individual consumer, individual labor etc.
Macroeconomics: It is concerned with aggregate variables such as international trade, inflation, deflation, monetary policy etc.

3. What Is It ?

Microeconomics: It is a small part of economy
Macroeconomics: It refers to a whole economy

4. Tools

Microeconomics: Demand and supply
Macroeconomics: Aggregate demand and supply
difference-microeconomics-macroeconomics


5. Determinant

Microeconomics: Price
Macroeconomics: Income

6. Scope

Microeconomics: It has a limited scope because it deals with small element of economy
Macroeconomics: It has a wider scope because it deals with whole economy

7. Objective

Microeconomics: To make firm level policies and proper utilization of resources
Macroeconomics: To make national level policies and proper distribution of resources

   Also Read: 

8. Helpful In

Microeconomics: It is helpful in profit maximization and cost minimization of individual firm
Macroeconomics: It is helpful for economic growth, full employment, and proper balance of payment

9. Nature

Microeconomics: It is static in nature
Macroeconomics: It is variable in nature

Microeconomics Vs Macroeconomics (Comparison Chart)

Basis
Microeconomics
Macroeconomics
Introduction
Study of economic behavior and tendencies of an individual or unit
Study of economic behavior and tendencies at national and international level
Concerned With
Individual variables
Aggregate variables
Refers To
Small portion of economy
Whole economy
Tools
Demand and supply
Aggregate demand and supply
Determinant
Price
Income
Scope
Limited 
Wider
Policy Making
Firm level
National level
Helpful In
Profit maximization
Economic growth
Nature
Static
Variable

I hope this post is helpful to understand the difference between microeconomics and macroeconomics and to make comparison between them.
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Difference Between Movement Along And Shift In Supply Curve

Economics ,
Difference Between Movement Along And Shift In Supply Curve
The major dissimilarities or difference between movement along and shift in supply curve can be highlighted as follows:
1. Introduction
Movement Along A Supply Curve: Change in the quantity of supply because of change in the price of the product.
Shift In Supply Curve: Change in the quantity of supply because of change in other factors (price of substitutes, production cost, government policy etc.) than the price of the product.

2. New Supply Curve

Movement Along A Supply Curve: No need to draw new supply curve
Shift In Supply Curve: New supply curve should be drawn

3. Also Called

Movement Along A Supply Curve : It is also called change in quantity supplied
Shift In Supply Curve: It is also called change in supply

    Also Read: 

4. Effect/Result

Movement Along A Supply Curve: It creates expansion (extension) or contraction in supply
Shift In Supply Curve: It creates increase or decrease in supply

5. Position Of Curve

Movement Along A Supply Curve: Remains always same
Shift In Supply Curve: It shifts either to the left or to the right

Movement Along Vs Shift In Supply Curve (Comparison Chart)

Basis
Movement Along A Supply Curve
Shift In Supply Curve
Introduction
Change in the quantity of supply due to the change in the price
Change in the quantity of supply due to the change in other factors
New Curve
Not needed
Needed
Also Called
Change in supplied quantity
Change in supply
Effect/Result
Expansion or contraction in supply
Increase or decrease in supply
Curve Position
Always same
Right or left

I hope this post is helpful to understand the difference between movement along and shift in supply curve and to make comparison between them.
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Difference Between Movement And Shift In Demand Curve

Economics ,
Difference Between Movement And Shift In Demand Curve
The main dissimilarities or difference between movement along and shift in demand curve can be studied as follows:
1. Introduction
Movement In Demand Curve: Change in the quantity of demand due to the change in the price of a commodity.
Shift In Demand Curve: Change in the quantity of demand of a commodity due to the change in other factors (income, taste, price of substitutes etc) than price.

2. New Curve

Movement In Demand Curve: No need to create new curve
Shift In Demand Curve: New demand curve should be drawn

3. Cause/Determinant

Movement In Demand Curve: It is caused by change in the price
Shift In Demand Curve: It is caused by change in other factors (but not change in the price of the product)

4. Also Called

Movement In Demand Curve: It is also called quantity demanded
Shift In Demand Curve: It is also called change in demand

     Also Read: 

5. Movement/Shift

Movement In Demand Curve: Demand curve always move either upward or downward
Shift In Demand: Demand curve either shifts to the right or to the left

6. Effect/Result

Movement In Demand Curve: It creates expansion (extension) or contraction in demand
Shift In Demand Curve: It crease increase or decrease in demand.

Movement Vs Shift In Demand Curve (Comparison Chart)

Basis
Movement In Demand Curve
Shift In Demand Curve
Introduction
Change in demand due to the change in price
Change in demand due to the change in other factors 
New Curve
Not needed
Should be created
Determinant
Price
Other factors (but not price)
Also Called
Quantity demanded
Change in demand
Shift/Movement
Upward/Downward
Right/Left
Effect
Expansion or contraction in demand
Increase or decrease in demand

I hope this post is helpful to understand the difference between movement and shift in demand curve and to make comparison between them.
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Difference Between Elastic And Inelastic Demand

Business , Economics
Difference Between Elastic Demand And Inelastic Demand
The major dissimilarities or difference between elastic and inelastic demand can be highlighted as follows:
1. Introduction
Elastic Demand: Type of demand which responses or changes very quickly if there is a small change in the price or other factors.
Inelastic Demand: Type of demand which does not response or change quickly (very small change or no change) if there is a change in the price and other factors such as income and substitutes.

2. Nature

Elastic Demand: It is responsive or highly variable in nature
Inelastic Demand: It is sticky in nature

3. Applicable

Elastic Demand: This type of demand is applicable for comfort and luxury products 
Inelastic Demand: This type of demand is applicable for necessity goods or daily required products

4. Demand Curve

Elastic Demand: It is flat
Inelastic Demand: It is steeper
difference-elastic-inelastic-demand


5. Substitute Products

Elastic Demand: Substitute products are widely available 
Inelastic Demand: Very few substitutes are available

6. Price Effect

Elastic Demand: If the price is increased, then total revenue will decrease and vice versa. 
Inelastic Demand: If the price is increased then total revenue will also increased and vice versa.

7. Consumers Sensitivity To Price Change

Elastic Demand: Highly sensitive
Inelastic Demand: Less sensitive

   Also Read: 

8. Quantity

Elastic Demand: Quantity or demand will decrease if the price increases
Inelastic Demand: Quantity will remain same in case of increase in price

9. Examples

Elastic Demand: Television, car, jewelry etc.
Inelastic Demand: Medicine, water, milk etc.

Elastic Demand Vs Inelastic Demand (Comparison Chart)

Basis For Difference
Elastic Demand
Inelastic Demand
Introduction
Kind of demand that responses quickly in case of small change in price or other factors
Kind of demand that does not response quickly in case of change in price or other factors
Nature
Responsive/Variable
Sticky
Applicable For
Comfort and luxury goods
Necessity goods
Demand Curve
Flat
Steeper
Substitute Products
More
Less
Consumers Sensitivity
High
Less
Effect On Quantity
Quantity decreases if price increases
Quantity remains same in case of increase in price
Examples
Television, jewelry, car etc
Medicine, milk, water etc.
Price Effect
Revenue decreases if price is increased and vice versa
Revenue increases if price is increased and vice versa

I hope this post is helpful to understand the difference between elastic demand and inelastic demand and to make comparison between them.
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Difference Between Cardinal Utility And Ordinal Utility

Economics ,
Difference Between Cardinal And Ordinal Utility
The main dissimilarities or difference between cardinal utility and ordinal utility can be pointed out as follows:
1. Introduction
Cardinal Utility: Benefit or utility gained from the consumption of certain resource is measurable in numerical value
Ordinal Utility: Benefit or utility gained from the consumption of certain product or commodity is not measurable in numerical value

2. Developed By

Cardinal Utility: Marshall and Robertson
Ordinal Utility: Allen and JR Hicks

3. Claim

Cardinal Utility: It claims that how much utility gained by consuming a commodity be calculated in number value
Ordinal Utility: It claims that which commodity is better can be asked

4. Additive

Cardinal Utility: Yes
Ordinal Utility: No
difference-cardinal-ordinal-utility
5. Type Of Approach

Cardinal Utility: It is quantitative approach utility can be measured by number
Ordinal Utility: It is qualitative approach because utility cannot be measured by number

6. Based On/Follows

Cardinal Utility: Utility Analysis
Ordinal Utility: Indifference curve analysis

7. Measurement

Cardinal Utility: Total units of utility (utils)
Ordinal Utility: Level of satisfaction (rank)

   Also Read: 

8. Realistic

Cardinal Utility: It is less realistic because measurement of utility in number value seems difficult.
Ordinal Utility: It is more realistic than cardinal utility

9. Example

Cardinal Utility: A plate of rice provides 50 utils of utility
Ordinal Utility: A glass of milk offers more satisfaction or utility than a plate of rice.

Cardinal Utility Vs Ordinal Utility (Comparison Chart)

Basis For Difference
Cardinal Utility
Ordinal Utility
Introduction
Benefit or utility that can be measured in numerical value
Benefit or utility that cannot be measured in numerical value
Developed By
Marshall and Robertson
Allen and JR Hicks
Claim
Utility gained by consuming a commodity can be determined in number value
Which commodity is better can be asked
Additive
Yes
No
Approach Type
Quantitative
Qualitative
Based On/Follows
Utility analysis
Indifference curve analysis
Measurement
Utils
Rank
Realistic
Less
More
Example
One plate rice provides 50 utils of utility
Glass of milk offers more utility than a plate of rice

I hope this post is helpful to understand the difference between cardinal utility and ordinal utility and to make comparison between them.
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