Definition of Micro & Macro Economics

The field of economics is typically divided into two broad sections, microeconomics and macroeconomics. Each is meant to represent a different scope for viewing economic problems and understanding the functioning of economies.
  1. Economics

    • Economics is the study of how goods and services are produced, distributed and consumed in a society.

    Microeconomics

    • Microeconomics seeks to understand how individuals and companies make decisions about how to allocate scarce resources.

    Examples of Microeconomic Issues

    • Microeconomics focuses on problems relating to supply and demand, elasticity, consumer preferences, markets and monopolies.

    Macroeconomics

    • Macroeconomics focuses on economics on a large scale, often from the point of view of government policy.

    Examples of Macroeconomic Issues

    • Issues studied in macroeconomics include national output, unemployment, interest rates and inflation.

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