Sunday, May 22, 2011

Micro and Macro Economic Differences

The difference between microeconomics and macroeconomics is as follows:
a. Micro Economics:

1) Discuss the behavior of individual households
2) Discuss the behavior of individual firms
3) Discuss the behavior of a (market) industry
4) Analyzing the problems:
a) The process of price level and quantity of goods traded in the market in price theory.
b) How producers determine production levels and choose the factors of production, so in theory provide an advantage in production.
c) The factors that determine the income of each factor of production in the theory of distribution.
b. Macro Economy:
1) Discuss the behavior of households in a country's economy.
2) Discussing perilakku all companies contained in a State's economy.
3) Discuss the behavior of the market (industry) within a country's economy.
4) Describe the problems:
a) The factors of production that can not be used fully in the economy governed by market mechanisms.
b) The steps the government to overcome the problem of unemployment.
c) The factors that cause rising prices (inflation) and what the policy is applied to resolve the issue.