Microeconomics studies subjects like
· Microeconomics can be defined as the study of an individual.
· Choices of individuals
E.g. consumption, investment, hours of work
· Choices of Firms
E.g. how much to produce, what price to charge
· The Determinants of Prices and Quantities in specific markets
· Market structure
· Market Competition ( what competitors are doing)
Macroeconomics studies subjects like
· Macroeconomics csn be defined as the study of aggregates or the study of economy as a whole.
· The performance of national economies, National income, Aggregate demand and supply
Long run growth and prosperity
· Why have some countries grown substantially while others remain poor?
· Short run booms and busts
· What determines unemployment and inflation
· Government policies to change performance