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Question about Microeconomics and Macroeconomics

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You are asked to address a professional meeting and explain microeconomics, macroeconomics and their differences. Please answer the following questions:

1. What are the main differences between microeconomics and macroeconomics? Provide an example of a microeconomic and macroeconomic phenomenon.

2. Would you give an example of a microeconomic decision you've made at work or home? What factors contributed to making that decision?

3. Would you give an example of how a macroeconomic phenomenon has impacted a personal or business decision of yours? In the end, what was the result of your decision?

Reference

Perloff, J. M. (2007). Microeconomics (4th ed.). New York: Pearson Addison Wesley.

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Solution Summary

Solution discusses microeconomics and macroeconomics in 483 words.

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You are asked to address a professional meeting and explain microeconomics, macroeconomics and their differences. Please answer the following questions:

1. What are the main differences between microeconomics and macroeconomics? Provide an example of a microeconomic and macroeconomic phenomenon.

Microeconomics is the branch of economics which deals in individual variables for example demand related to household.
Macroeconomics is the branch of economics which deals in aggregates for example National Income.

The major difference between the two is that :
Microeconomics deals in individual variables and hence its perspective is narrow. On the other hand macroeconomic deals in aggregate and hence its perspective is wider.

As per difference between, "microeconomics concentrates on the 'ups' and 'downs' of the markets for services and goods, and how the price affects the growth of these markets. An important aspect of this economy, is also to examine market failure, i.e. when the ...

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