Differences between Micro and Macro Economics. Macro- and microeconomics, and their wide array of underlying concepts, have been the subject of a great deal of writings. The field of study is vast; here is a brief summary of what each covers: a). The micro economics is the study of an economic behavior of a particular individual, firm, or household, i.e. it studies a particular unit. On the other hand, macro economics is the study of the economy as a whole i.e., not a single unit but the combination of all, firms, households, nation, etc. Economics is the study of how to best allocate scarce resources among competing uses. Scarcity in the economy is the main problem. There are not enough resources to keep up with the demand for them. Within the discipline of economics, there are two areas of study: Micro and Macro Economics. A collection of macro-economic essays on topics Inflation, Economic growth, government borrowing, balance of payments. Evaluation and critical analysis of all latest issues of the current day. Browse essays about Microeconomics and find inspiration. Learn by example and become a better writer with Kibin’s suite of essay help services. It looks like you've lost connection to our server.
- Micro Economics Essays
- Difference Between Micro and Macro Economics
- Essay on Microeconomics and Macroeconomics
- Macro Economic Essays
In microeconomics, we get to understand the various activities by the various players in an economy. It concentrates in analyzing how parties spend on various resources.
It also takes into consideration the driving forces in making any decision towards utilization of the resources with the aim to satisfy human wants. Human wants have different characteristics in their individual unique nature.
Micro Economics Essays
Difference between microeconomics and macroeconomics Micro economics is about economic situations pertaining to an individual. Macro economics is more concerned with the whole economy. Microeconomics economics is generally with prices as their main concern. Its important to note that ideals situations in microeconomics may not rhyme with the general economy macroeconomics.
Mean while microeconomics and macroeconomics are relatively interlinked. For micro economics, the ease of supplying goods and services depends on the general investment and activities in the whole economy.
Meanwhile the total performance of macro economics is a subject of the total activities that take place in micro economics Farmer, , p. Economic agents are players in economics who make decisions on how much to spend on an item or whether the need needs any attention at all. Basic concepts on microeconomics and macro economics All goods produced by an economy equals to consumption of the house holds. This is an assumption that nothing produced by the economy is the same with what the households require.
In this article, we discuss the different forms of wants. One obvious thing is that wants will always be present and they will always require attention all times. If you give a mouse a cookie is a literature book purposely addressed to small children. However it contains immense economic concepts.
Difference Between Micro and Macro Economics
This book was written Laura Joffe Numeroff A story is told of a boy who was taking some time to rest when an unexpected visitor showed up, a mouse.
The mouse had different wants and needs which mutated as the day progressed.
The boy felt companionate about the lone traveler and he generously gave him a cookie. On receiving the cookie, the mouse developed a new want, he asked the boy to assist him with milk so that he could be comfortable taking the cookie offered to him by the boy.
The boy is kind enough and gives the rat some milk. Once it was done taking milk it asked the boy if he could avail a mirror so that it could check if there was any milk mustache. Once he looked into the mirror he was shocked at the size of his hair. He needed a shave so he requested the boy to avail pair of scissors. Once the boy trimmed the mouse hair, the house was littered with hair. He needed to look for a broom and clean up the place.
Essay on Microeconomics and Macroeconomics
This story is an appropriate background to base our argument on characteristics of microeconomics and macro economics. We shall be in a position to understand the nature of human wants, what it takes to satisfy them and the various challenges involved. We also get to analyze the various strains that befall the economy as a whole TR Jain, , p. The mouse gave the boy a difficult afternoon with its unlimited wants and needs. Human wants and needs connect to the character of the mouse. People are faced with difficult challenges in making choices between what to prioritize and what leave out among numerous wants and needs that pop out each day.
Macro Economic Essays
This paper will connect on this phenomenon in relation to micro economics. Micro economics deals with the relation ship between buyers and sellers. It is also concerned with the factors that affect it. Macro economics on the other hand IS concerned with the brooder national economy.
First of all wants and needs can not be satisfied. Once a need has been addressed, it seems satisfied for that moment.
After some times it represents itself again and require attention one more time. Needs like food require that a person keeps on satisfying them time after time. Wants are complementary in the sense that one leads to another.
The mouse sows the need to have milk at his disposal once he was served with a cookie. A need or a want may require another different want to be satisfied. The later is a subject of fulfilling a need.
For example a person who buys a car will need to buy gas also else they may not satisfy their need to drive car. Wants vary with situations and time. Mouse needs changed with situations like when he saw a mirror he immediately wanted to have a shave. Taking the boy to symbolize the economy, one will realize the obvious strain posed. First of all the boy has to keep on attending to the demands of the mouse. Some times the economy is strained in delivering services with regard to numerous high demands; it may also not be in a position to serve all needs at its disposal.
The econ9omy must also be in a position to offer required services once they arise this are depicted in the boys character. He was always ready to attend to the mouse demands. The boy was only providing to the mouse which in return offers nothing in return. If households in an economy do not provide services to the economy, the economy must also not attend to its requirements since it would be equally impossible to sustain the economy.
The boy is not doing a single thing to help in provision of goods. If the boy exhausted all he had trying to serve the mouse, he would then end up with nothing for himself to spend leave alone the mouse Weintraub, , p. Use of resources Use of resources is crucial in an economy. Resources are supposed to be used apropriatly and when need arises. In order to make good use of resources it is important to carryout training to the general population.
It would not be wrong to assume that the boy had little if any knowledge on how to spend the little resources at his disposal. It is also important for the general public to know when to spend on a particular want or when not to spend. Economic developments can only be achieved if resources are used appropriately and the best is made out of them Farmer, , p. In macro economics, we also learn the various implications of house holds behavior to the whole economy.
If the economy is strained by the various wants it may end up becoming un able to provide to the house holds. Resources must be availed to enable the economy support the households. The boy was serving the mouse consistently yet there was no replacement of the goods he gave out. It implies that he could have got himself into a position where he could no longer have something to offer the mouse.
In fact the boys actions can be regarded an abuse of the economy Weintraub, , p. References Amitava Krishna Dutt, J. Development Economics and Structuralist Macroeconomics. The Macroeconomics of Self-fulfilling Prophecies. Introductory Microeconomics and Macroeconomics. Need an essay or paper?
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