Microeconomics versus Macroeconomics

1
Microeconomics versus Macroeconomics

• Santo Dodaro
• Econ 100
• Stfx

2
Microeconomics

• Deals with individual components within the
  economy
• Main focus is on individual markets
• Provides worms eye view of the economy

3
Main Issues Addressed in Microeconomics

• What and how much to produce (resource
  allocation)
• How to produce (technology and efficiency)
• For whom to produce (distribution)
• Where to produce (location)
• When to produce (timing)

4
Main Focus of Microeconomics

• markets
• price mechanism

5
Macroeconomics

• Looks at the economy as a whole
• Provides birds eye view of things

6
Main Issues Addressed by Macroeconomics

• Employment and unemployment (utilization of
  resources)
• Inflation (maintaining the purchasing power of
  money)
• Growth (expansion of economic activity)
• Other important issues include the following
• equity
• sustainability