Macroeconomics vs. Microeconomics

Only available on StudyMode
  • Download(s) : 333
  • Published : December 5, 2012
Open Document
Text Preview
Economics is the analyses the production, distribution and consumption of goods and services. In economics, you will find out the consumption of households up to the government. Economics is the study of how we allocate goods and supply from scarce resources. We will also learn the significance of the relationship between supply and demand. We will know if a country is having a deflation or inflation if we know economics. Deflation is a decrease in the general price level of goods and services while inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Economics has two district or branch. It is microeconomics and macroeconomics. It is a study of a market. Market is any structure that allows buyers and sellers to exchange any type of goods, services and information. Economics will also give knowledge to consumers or buyers. They will be informed in the price ceiling and price floor of goods and services. For business-minded individuals, they will know if the business they are planning will be successful if they will know the right market. Also the investors need economics so that they will know if investing in a country or a business is not a junk investment. First, let us know the difference of each district. Microeconomics focuses on a small unit of market such as companies and individuals. Microeconomics is a branch of economics that analyzes the market behaviour of individual consumers and firms in attempt to understand the decision-making of a household or firm. Microeconomics focuses on patterns of supply and demand and the determination of price and output in individual markets. Microeconomics studies the different type of market structure such as perfect competition, oligopoly, monopoly and monopolistic competition. Perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Monopoly, in which there is only one...
tracking img