Microeconomics is different from macroeconomics in that it focuses on supply and demand, the economic behavior of an individual, household, or business, and markets where goods are bought and sold. Macroeconomics focuses on overall economic growth, inflation, taxation, unemployment, and economic policies of a nation or region. Microeconomics deals with many of the same issues as macroeconomics, but microeconomics concerns itself with the effect that these issues have on an individual, household, or business, rather than the effects that they have on a regional, national, or global scale.
Supply and Demand
Discuss supply and demand and how they affect fluctuating prices in the market, and discuss how fluctuating markets affect individuals. Talk about different factors of supply and demand, such as manufacturing costs, the labor market, recession and depression, and even seasonal changes. Some examples are the price of electronics in an increasingly technology-based society, or the demand for staple food items in different regions.
Research different market structures, such as monopolies, duopolies, cartels, and oligopolies and how they affect the prices of different items. Focus on one market structure, or compare different structures. Include statistical data to support your conclusions. Discuss how different market structures affect supply and demand, prices, and the individual consumer.
Talk about how the labor market affects supply and demand, and the price of manufactured items. Discuss labor unions and how they affect the labor market, or how the labor market is affected by an increase or decrease in available skilled labor. Address the effects that strikes, boycotts, and increasing or decreasing educational standards affect the labor market. Consider the effect that changes in the labor market and fluctuating unemployment rates have on the individual household as well as small businesses.
Discuss how pricing affects consumer purchasing, particularly the purchasing trends of individual households. Describe how supply and demand, the market structure and the labor market affect pricing. Take into account the effect that advertising has on how much individuals are willing to pay for an item. Consider addressing the challenges that small businesses face when competing with larger companies.
Talk about different models of entrepreneurship and how new and innovative small businesses affect the market, as well as how the success of small businesses affect individual household income and spending. Discuss how advertising, creativity, product research and other factors contribute to a business' success and or failure. Point out both the pros and cons of starting a new business in the current market.
Consider the role that banks play in the market, and how interest rates, credit, and increasing debt affect individual spending, pricing, and supply and demand. Discuss what causes interest rates to fluctuate and how this affects personal and small business loans. Consider foreclosure and repossession, and how they affect an individual household. You might also consider talking about student loans, how banks manage them and how they affect individual spending.
Recession and Depression
Discuss the definition of and causes of recession and depression, including factors such as inflation, tax rates, interest rates, unemployment, increased debt and consumer perception of the economy. Give examples of ways that individuals or small businesses can take precautions to protect themselves in case of a recession or depression. Discuss how a recession or depression can affect supply and demand, and what effects a shift in supply and demand can have on small businesses and entrepreneurs.
Research the impact that different health care systems have on individuals and households. Discuss the pros and cons of privatized health care, as well as the pros and cons of government-controlled health care as they relate to the income of individuals and households. Discuss also how the cost of health care affects taxes, Social Security benefits, and individual households.
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