There are differences between microeconomics and macroeconomics, although, at times, it may be hard to separate the functions of the two. Microeconomics and macroeconomics are the two major categories within the field of economics. Microeconomics is the branch of economy, especially such topics as markets, prices, industries, demand, and supply. Microeconomic concentrates on the difficulties of the markets for services and goods, and how the price affects the growth of the markets (Microeconomics 2000-2010). Microeconomics examines the behavior of individual economics entities: firms and consumers. How do individuals make consumption decisions? How do firms make profits and price their goods and services. The main focus of microeconomics is markets, wage markets, the market for gasoline, rent markets, etc. Macroeconomics is the branch of economics that studies the entire economy, especially topics as aggregate production, unemployment, inflation, and business cycles. Macroeconomics is a vast field that concentrates on two areas, economic growth and changes in the national income (Macroeconomics 2000-2010). Macroeconomics asks questions like; why does the U.S. economy generally experience higher rates of growth than European economies? What causes inflation? What effect does the national debt have on economic growth?
Economic goals have five conditions of the mixed economy, including full employment, stability, economic growth, efficiency, and equity, that are generally desired by society and pursued by governments through economic policies. The five goals are typically divided into the two that are important for microeconomics (efficiency and equity) and the three that are important for macroeconomics (full employment, stability, and economic growth) (Economic Goals 2000-2010). Efficiency and equity are the two-microeconomics goals most relevant to markets, industries, and part of the economy and are thus important to the study of microeconomics. Efficiency is...
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