Microeconomics and macroeconomics
Economics is divided into microeconomics and macroeconomics. rences between microeconomics macroeconomics.
The difference between microeconomic and macroeconomic
Microeconomics
Microeconomics is the study of the behaviour and decisions of households and fims and the performance of in dividual markets.
It includes changes in the eam ings in a particular occu pation and changes in the output of an industry.
Macroeconomics
Macroeconomic is the study of the whole economy.
It includes changes in the number of people employed in the country and changes in thecountry's output.
The connection between macroeconomics and microeconomics
✔️Many ofthe concepts used in microeconomics are also used in macroeconomics.
✔️ Microeconomic decisions and interactions add up to the macroeconomic picture.
Decision makers in microeconomics and macroeconomics
* The decision makers in microecon omics and macroeconomics are called as economic agents
* They are households, firms and government.
Households are buyers, consumers, avers and workers.
Firms are businesses that produce goods and services.
Govemment is the system which rules a country.
* The aims of decision makers
Households: seek low prices and good quality products.
Workers: they wantgood working conditions and high pay.
Savers : they want their money to be safe and give a good return.
Firms : make much profits.
Government:wants a strong economy, full employment
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