Question

Slicing method and Lumping method.

Answer 1

Slicing method and Lumping method:-

Micro economics uses slicing method for in-depth study of economic units. It divides or slices the economy into smaller units, (such as individual households, individual firms, etc) for the purpose of in-depth study.

Macroeconomics uses lumping method for the purpose of economic study. Under lumping method we study the general price level, and not prices of individual products.

Answer 2

S.No.	Slicing Method	Lumping Method
(i)	In slicing method the entire economy is cut into small individual slices.	In lumping method the whole economy will be studied.
(ii)	Microeconomics uses the slicing method.	Macroeconomics uses the lumping method.
(iii)	In slicing method indepth study of individual unit is done.	In lumping method indepth study of whole economy is done.