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Difference Between Micro And Macroeconomics

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What is the difference between micro and macroeconomics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one.

Economics is a branch of the social sciences that studies and interprets human behavior related to the production, exchange and use of goods and services. Economics is the study of how society decides what, how and for whom to produce (Begg 1984, p2). The content of the economic concept has expanded along with social development and human perception. Economics is seen as an area of human society 's activity in creating simultaneous value with human impact on nature in order to satisfy human and social needs. Based on the perspective, scope and interaction between economic activities, economics is divided into two important sections: Microeconomics and Macroeconomics.

Microeconomics studies the behavior of economic actors, such as businesses, households, in a particular market. Microeconomics analyzes market mechanisms that establishes relative prices between items and services and the distribution of limited resources across multiple uses. Besides, microeconomics also analyzes market failure, when markets are not operating well, and describes the conditions required in the theory of perfect competition.

Microeconomics research scopes include: Basic theories for economics such as supply, demand, price, market; Theories of consumer behavior; Theory of producer behavior; Market structure; Market factors of production: labor - capital

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