resources, and helps governments in their budgetary and trade related decisions.
The two main branches of economic study are microeconomics and macroeconomics.
Microeconomics is the study of the economic system from the perspective of households and business firms; it focuses on the nature of individual...
comprises two areas: microeconomics and macroeconomics. Macroeconomics is concerned with the big picture, for example, the national economy and gross domestic product. By contrast, microeconomics is concerned with the small picture and focuses on theories of supply and demand. Microeconomics is very important...
resources. The task of management is to optimize the use of resources.
2. What are the characteristics and scope of Managerial Economics?
1. Microeconomics: It studies the problems and principles of an individual business firm or an individual industry. It aids the management in forecasting and evaluating...
and fiscal policy, and the microeconomic
environment. We estimate this framework using multiple data sets covering more than 130 countries
over the 2001-2008 period. We find a positive and separate influence of each driver on output per
potential worker. The microeconomic environment has a positive...
Broadly speaking, microeconomic analysis is individualistic, whereas macroeconomic analysis is aggregative. Microeconomics deals with the part (individual) units while macroeconomics deals with the whole (all units taken together) of the economy.
1. Difference in nature: Microeconomics is the study of...
and how each economic activity is seen in our daily lives.
II. Scope of Economics
MacroeconomicsMacroeconomics is a branch of economics that deals with the performance, structure, and behavior of a national or regional economy as a whole. Along with microeconomics, macroeconomics is one...
labeled “monetary theory” and “price theory.” Today, the corresponding dichotomy is between “macroeconomics” and “microeconomics.” The motivating force for the change came from the macro side, with modern macroeconomics being far more explicit than old-fashioned monetary theory about fluctuations in income...
another and this interaction appears to be systematic. Speaking of systems, globalization is one; it is a phenomenon that has many countries, organizations and institutions operating together. Each of the components in the globalization process exists for its self and is self-driven, yet the system functions...
today, I would like to discuss the major differences between
microeconomics and macroeconomics and how both these fields of study impact and
influence decisions made by me in the work and home environments.
Microeconomics is the study of decisions that people and organizations make
Alternative Microeconomics – Part 1, Chapter 1 – Nature of Economics
used to describe and analyze the market processes by which individuals allocate scarce resources to satisfy as many wants as possible. This increasingly narrow focus is the domain of modern, “neoclassical,” microeconomic analysis...
to compare the costs and benefits of
alternative courses of actions. Every decision maker should be aware of the
opportunity costs that accompany each possible action. An opportunity cost is
something that a decision maker should give up in order to obtain or acquire
another desired item.
of the processes of allocation. Victor Hugo’s [1802-1885] Les Misésrables  and
many of the Charles Dickens [1812-1870] stories are examples.
The method that a society devises to answer these questions shapes the
nature of society and influences the answers to the questions. There are...
Microeconomics versus Macroeconomics
Economics for the Global Manager
I want to thank everyone for joining me today to review the effects of microeconomics and macroeconomics in conjunction with the healthcare industry. We will start with a brief introduction of what...
of production, demand for the commodity. It is studied under Price Theory.
* How much to produce is the problem of determining the quantity for each good to be produced on the basis of the technology available, cost of production, demand for the commodity
How to produce?
* Choice of technique...
you have completed your study of this chapter,
you will be able to
Define economics, distinguish between microeconomics and
macroeconomics, and explain the questions of microeconomics.
Describe the work of economists as social scientists.
Explain five core ideas that define the...
authoritarian)leadership. The experience of Chile, a country which has perhaps gone further than any other in implementing liberal economic policies, provides a good example. An essay on Chile’s reform strategy by José Piñera (1994), an economist and minister of labor and social security under General Pinochet, concludes:...
1 The graphical representation of supply and demand
o 1.1 Supply schedule
o 1.2 Demand schedule
• 2 Microeconomics
o 2.1 Equilibrium
• 3 Changes in market equilibrium
o 3.1 Demand curve shifts
o 3.2 Supply curve shifts
• 4 Elasticity
1.) How does the study of economics depend upon the phenomenon of scarcity? Economics is how people make choices under the conditions of scarcity. Scarcity just means limited, you have to pay to have running water or bottled water, and it is scarce. What this means is that everything has a...
Introduction : What microeconomics is all about ?
Macroeconomics focus on the economy as a whole. In macro, you outline relationships between variables ( growth, employment rate, investment…).
Micro : focus on economic agents, players, and companies. Focus on how consumers...