According to Investopedia, microeconomics is the study of decisions made by people and businesses regarding the allocation of resources and prices of goods and services, while macroeconomics is the study of the behavior of the economy as a whole. Microeconomics focuses on individual companies, and macroeconomics looks at countries and governments.Know More
Microeconomics involves studying a specific company to determine what can be done by the company to increase productivity and lower costs while increasing the product demand and generating a higher profit. It is based on the idea of a market economy in which consumer demand is the driving force behind the prices and production levels of goods and services. The focus is on the concept of the supply and demand.
Macroeconomics studies a country's typical economy-wide indicators associated with the conditions of national economies. It deals with such statistics as unemployment rates, gross domestic product
(GDP), overall price levels and inflation. Although macroeconomics has a much broader focus than microeconomics does, many macroeconomic factors are essential to making predictions and conclusions at the microeconomic level. For instance, knowing what the unemployment rate is at the national level can help a microeconomist predict future layoffs in a specific industry. The studies of microeconomics and macroeconomics are both important to a country's economy.Learn more about Economics
Business, which one could refer to as economics, is important to society because it fundamentally deals with the allocation of resources throughout the world. These resources always suffer from scarcity, in that there will always be a higher demand for resources than there will actually be available.Full Answer >
The two major branches of economics are microeconomics and macroeconomics. Microeconomics deals largely with the decision-making behavior of individual consumers and firms in markets, while macroeconomics focuses largely on the aggregated behavior of all consumers and firms in an economy.Full Answer >
The study of macroeconomics offers insight into the way the economy works on a large scale, revealing patterns and relationships that affect its efficiency and health. From a consumer standpoint, understanding these patterns and relationships makes for responsible decision making in areas such as savings, investments and long-term financial planning.Full Answer >
The economy, as a system of resource use and distribution, is important because resources are finite. Understanding the economy is crucial to political awareness and becoming an informed citizen.Full Answer >