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Macro And Micro Economics


Broadly speaking, economics can be separated into two micro economics and macro economics. Understanding differences in macroeconomic and micro economic and lies in the scope of economic studies. Here is the definition and distinction of micro and macro economics:
Macroeconomic

Macro economics, examines economic variables studied in the aggregate (overall). Variables that also impact on a variety of government actions, among others: national income, employment or unemployment, money supply, inflation, economic growth, and the balance of international payments.

The scope of the macro-economic assessment is the business community and government in managing the factors of production efficiently. Study is the foundation of macroeconomic theory Keynes Macroeconomics focuses on the business community as a whole to make efficiencies in the use of factors of production are available.

Micro Economics

Macro economics, study the economic variables in the scope of such small firms, households. Microeconomics also studies how various decisions and behaviors affect the supply and demand for goods and services, which will determine the price, and how prices, in turn, determine the supply and demand of goods and services further.

The scope of micro-economic studies are producers and consumers. Tradition based on the theory of Adam Smith. Microeconomics so has the scope to the producers and consumers. Producers and consumers in the real economic world are individuals in the family household, community, or company.

Differences in micro economic and macroeconomic

• Price

    
Microeconomics: Price is the value of a commodity (goods only).
    
Macroeconomics: The price is the value of commodities in the aggregate (overall)

• Unit of analysis

Microeconomics: A discussion of the economic activity on an individual basis. Supply and demand and Examples, consumer behavior, producer behavior, markets, revenues, expenses and profits or losses of the company.
 
  
Macroeconomics: The discussion about the overall  activities. Examples of national income, economic growth, inflation, unemployment, investment and economic policy.

• The purpose of the analysis

Microeconomics: More focus on the analysis of how to allocate resources in order to achieve the right combination.
   
Macroeconomics: More focus on the analysis of the impact of economic activities on the economy as a whole

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