Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
Question
Book Icon
Chapter 1, Problem 10AA
To determine

To analyze:The difference between microeconomics and macroeconomics.

Expert Solution & Answer
Check Mark

Explanation of Solution

Microeconomics is the analysis of decisions taken by individuals and organizations about resource distribution and the prices of goods and services. This also considers taxation, rules and policy laws.

Macroeconomics examines a country’s behavior, and how its policies impact the entire economy.

The difference between microeconomics and macroeconomics is shown below:

    Micro economics Macro economics
    There are individual markets in which income of individual buyers are considered. It considers whole economy and its GDP.
    It analyzes the effect of price change on a single good. It analyzes overall change in price level by calculating inflation.
    It analyzes the effect of labor supply and demand on a single market. It analyzes the overall employment level of the economy.
    It analyzes the demand and supply of an individual good in the market. It considers aggregate demand and overall productive capacity of the economy.
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education