Economics and financial management consist of two major components: microeconomics and macroeconomics. These two components are interchangeable and act as the foundation to the core concepts to understanding the enormous arena of the financial world. Macroeconomics can be defined in several business terms, but simple put, it is the branch of economics that studies the economy of consumers or households or individual firms. Microeconomics basically deals with the choices and assessments made by businesses that look at the best interest of allocation resources, while determining the prices of good and services. In the long run economic growth increase GDP. Taxes, government and policy should all be taken into consideration when referring to microeconomics, because it looks specifically at how these things help increase and capitalize on its productive and capacity. On the flip side, macroeconomics looks at the overall behaviors of economics, not only from a business perspective, but on an industrial and financial system known a Gross National Product (GDP). Examples of how GDP affects the economy would be the continuing strain of the unemployment crisis affecting the nation. While both Micro and macro economics are very different, they are work interchangeably as they overlap in the business field on many occasions. Micro and macro economics provide essential for any finance expert. It remains an ongoing challenge in this evolving economy for businesses to stay afloat while trying to maintain competition and increase revenue. While businesses remain on the balance ball, the dichotomy of understanding economics is critical in order to stay competitive and triumphant in the market. There is a great deal of assistance available in these times to foster the economic decisions that will contribute to the rise and/or decline of income versus demand. The prices of elasticity of demand takes into account the rate of response of quantity demand due to a price...
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