“Microeconomics is the study of how individuals and firms make themselves as well off as possible in a world of scarcity and the consequences of those individual decisions for markets and the entire company, (Perloff, 2007)”. The main concept of microeconomics is supply and demand. How individual people or businesses buy, sell, or acquire goods and services, the decisions made regarding buying/selling the goods/services and what factors directly affect the decisions.
Macroeconomics on the other hand, discusses the economy as a whole. Studies on things like; why does economy in the US experience a higher rate of growth than that of the European economy, what effects does the national debt have on the growth of the economy, or what causes inflation? These questions are all based on the economy as a whole, whether it be the local economy, the national economy, or the economy of the world. It is not based off of the individuals or supply/demand. ("The Beechmont crest," )
People make many different microeconomic decisions every day, some small and some very large. For each person their decision may be different. A recent microeconomic decision my husband and I made was whether or not to move off base. We currently live on an Air Force base in Okinawa, Japan. The little subdivision that we live in is currently being renovated. We are expecting our notice to vacate our house within the next month or two. Once we get the notice we will have 6 months to find a new place to live. We have 2 main options regarding this move. We can either choose to stay living on this base and contact family housing and have them offer us a new house somewhere different on the base. This would be our simplest choice. However, the second choice we have is to move off base. Now being that we are in a foreign country, the idea of moving off base is not as simple as it was when we were living in the states. A lot of factors come into play when making this... [continues]
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