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Microeconomics vs Macroeconomics

Microeconomics is "the study of the operations of the components of a national economy, such as individual firms, households, and consumers." (http://dictionary.reference.com/browse/microeconomics)

Macroeconomics is "the study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors." (http://dictionary.reference.com/browse/microeconomics)

QUESTION:

What is the difference between micro and macroeconomics and how does this relate to healthcare? (Please provide as much information as possible - at least 250 words for better understanding. Thank you.).

Solution Preview

Interesting question! Let's take a closer look through discussion and example, which you can draw on for your final 250-word copy I also attached a supporting resources for further considerations.

RESPONSE:

1. What is the difference between micro and macroeconomics and how does this relate to healthcare?

"Economics is the study of how resources are allocated with the marketplace" (http://www.icep.org/edsurvival/documents/HealthcareEconomics_000.doc). In other words, economics are the rules explain the behavior of people who pursue (and compete with others for) the limited resources (goods, currency, health, etc.) within a society, such as healthcare. Recently, the interest in healthcare economics has blossomed over the past several decades as spending on healthcare has continued to escalate, now representing well over $1 trillion (with approximately 40% going to hospitals and 20% going to doctors), and occupying over 16% of the nation's Gross Domestic Product (cumulative value of domestic goods and services produced). (http://72.14.253.104/search?q=cache:AtD-RF_fdDEJ:www.icep.org/edsurvival/documents/HealthcareEconomics_000.doc+macroeconomics+in+healthcare&hl=en&ct=clnk&cd=1&gl=ca&client=firefox-a)

There are two types of economics, and both relate to healthcare differentially. For example, microeconomics is "the study of the ...

Solution Summary

This solution discusses the differences between micro and macroeconomics and how this relate to healthcare. Supplemented with an informative article on macroeconomics in healthcare.

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