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Microeconomics Is a Science for Consumers and Businessmen Whereas Macroeconomics Is a Science for Policy-Makers and Economists

  • Date Submitted: 10/06/2016 03:16 PM
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«Microeconomics is a science for consumers and businessmen whereas macroeconomics is a science for policy-makers and economists»
Do   you agree? Do you personally need Economics?

To answer given question we have to understand the main difference between macro and microeconomics.

The field of microeconomics is concerned with things like:

  * Consumer decision making and utility maximization
  * Firm production and profit maximization
  * Individual market equilibrium
  * Effects of government regulation on individual markets
  * Externalities and other market side effects
  * Macroeconomics

Macroeconomics can be thought of as the “big picture” version of economics. Rather than analyzing individual markets, macroeconomics focuses on aggregate production and consumption in an economy. Some topics that macroeconomists study are:
  * The effects of general taxes such as income and sales taxes on output and prices
  * The causes of economic upswings and downturns
  * The effects of monetary and fiscal policy on economic health
  * How interest rates are determined
  * Why some economies grow faster than others

There is an obvious relationship between microeconomics and macroeconomics in that aggregate production and consumption levels are the result of choices made by individual households and firms, and some macroeconomic models explicitly make this connection.
Nevertheless, as it was said previously, macroeconomics and microeconomics are for different aims.

I agree with the statement, as far as microeconomics consisit knowledge about enterpreneurship and relation whithinh once company, and macroeconomic is about relations worldwide (or within one country.) But I think that consumers are all people who are involved in the economic process 9and that is tha majority), so macroeconomics are very importnant for ordinary people, to be able to make expectstions or take the most reliale steps in the tough situation.


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