According to Investopedia, microeconomics is the study of decisions made by people and businesses regarding the allocation of resources and prices of goods and services, while macroeconomics is the study of the behavior of the economy as a whole. Microeconomics focuses on individual companies, and m
The three basic questions of microeconomics are: "What should I produce," "How much should I produce," and "Who will buy these goods or services?" These three questions are critical to successfully managing a company, thus critical to understanding microeconomics.
Macroeconomics is important because it allows the public to understand the economy as a whole, facilitating decisions relating to firms, fiscal policy and global economic policy. Macroeconomics gives academics, policy makers and other interested individuals a view into the relationship between facto
The study of macroeconomics helps create an overall idea of the state of a nation's economy. As the world is shifting toward a global economy, this could be very beneficial in devising ways for stabilizing troubled economies.
Three of the most frequently used elements of macroeconomics are the production function, the output equation and the unemployment equation. All three are measures of the efficiency and size of a macroeconomy.
Macroeconomic factors are events or situations that affect the economy on a broader level, influencing the economic outcome of large groups of people on a national or regional level. Some macroeconomic factors include unemployment, savings, inflation and investments.
Macroeconomic variables, or MVs, are indicators of the overall state of a country's economy. In the United States, they include the Consumer Price Index, average prime rate, Dow Jones Average and inflation rate. The government studies MVs and attempts to keep them at certain levels in order for the
When brainstorming topics for a macroeconomics paper, good topics include exploring the housing crisis, foreign trade, credit standards, the push for frugality, cigarette and alcohol taxes, corporate subsidies, auto industry sales and property taxes. Additional paper topics for a macroeconomics cour
Students can find general microeconomics questions on MIT.edu. They can be found at the end of each chapter in the course "Introduction to Microeconomics," which is under the "Social Science" topic in the course finder.
Using GDP in macroeconomics gives the advantage of easy calculation, because most GDP calculations use the same methodology and it correlates with development measures such as literacy levels. Disadvantages of using GDP include that it excludes the underground economy and ignores the value of househ