Definition of Micro & Macro Economics
The field of economics is typically divided into two broad sections, microeconomics and macroeconomics. Each is meant to represent a different scope for viewing economic problems and understanding the functioning of economies.
Economics is the study of how goods and services are produced, distributed and consumed in a society.
Microeconomics seeks to understand how individuals and companies make decisions about how to allocate scarce resources.
3 Examples of Microeconomic Issues
Microeconomics focuses on problems relating to supply and demand, elasticity, consumer preferences, markets and monopolies.
Macroeconomics focuses on economics on a large scale, often from the point of view of government policy.
5 Examples of Macroeconomic Issues
Issues studied in macroeconomics include national output, unemployment, interest rates and inflation.