Macroeconomics and Microeconomics are the the 2 important field of study in economics as of now lets start with Microeconomics
Microeconomics
Microeconomics is the study of the economic decisions at the level of an individual person or a private firm , it mostly focuses on private economics. The microeconomics mostly targets what is likely to happen in the economy for example if you have a gold business but then suddenly the shoveling of gold increased which made the amount of gold increase thus people get to know gold are not really rare to get , they would think we would get gold anywere thus microeconomics is the study which shows how would to react and take manage that situation when you are a gold seller cause gold has currently became common thus what step would you take , this is the study of Microecnomics.
Decision Makers In Microeconomics
Lets learn about the Decision makers in Microeconomics lets see some sort of examples , here are few :
An entrepreneur considering which business to start , does a make sense when a person decides which business to start throught analytical research as whats more in demand ?
A farmer deciding how best to allocate farmland to different crops or the rearing of farm animals , it also make sense as the farmer should know what kind of natural substance should they plant more which is more in demand
Firms investigating the prices being charged by there rivals in order to set their own prices , as the business do not want there customers to have more attention to the rivals thus they might have to set cheaper prices , it might depend of pcc charts
Macroeconomics
Macroeconomics is the study of decision making , rather than an individual segment it mostly depends on public segments which basically focuses on the whole economy , It focuses in sectors like inflation , deflation or how the public economy is working. The macroeconomics explains what is likely to happen to an economy as a whole. For example we could see a period when the economy of the country does not go good which may result many unemployment and could also result negtive growth in the public economy. The macroeconomics mostly works with data and evidence for the changes in the economy.
Decision making in macroeconomics
On the the decision making of macroecon lets go throught examples :
Government decision regarding tax , such as alchohol or petrol , this might a decision as the government may be lacking in the money to upgrade the city or a particular public property
It mostly focuses on public decisions to public authority.
Question review
What is meant by microeconomics
What is meant by macroeconomics
Who are the main decision makers in microeconomics and how does this differ from the decision makers in macroeconomics
Who are the decision makers affected by microeconomics
Who are the decision makers affected by macroeconomics
Microeconomics is a study of sector that deeply focuses on the study of decision making in private firms for example the decisions making in a shop
Macroeconomics is a study that focuses on public sectors , it focuses on the decision making in public sectors for example the decision making of tax price
The decision makers in macroeconomics are probably the government while at microeconmics its the owner or the business which is a private sector , it has a diffrence as the government focuses on public economy while the business focuses on its economic status
The firms and private sectors are affected by thier own decision making
The government and the public banks would be affected
Exam style questions
1.Which topic is not studied in microecon ?
A. Economic growth
B. Monopoly and competition
C. Price elasticity of supply
D. PPC
a. the right answer is Economic growth as it focuses on public sectors
2.Which option is not studied in macroeconomics ?
A. The conquences of a higher rate interest
B. The effect of lower exchange rate
C. The impact of price change in smart phone market
D. The impact of progressive taxes
C is the correct answer as smart phone market are disscused by private sectors unless an public crisis is depended on public sectors