The Beechmont Crest Guide to Economics
How does Microeconomics Differ from Macroeconomics?
Microeconomics and macroeconomics are the two major categories within the field of economics.
Microeconomics examines the behavior of individual economic entities: firms and consumers. How do individuals make consumption decisions? How do firms make profits and price their goods and services? The focus of microeconomics is markets: wage markets, the market for gasoline, rent markets, etc.
Macroeconomics is the study of the economy as a whole. Macroeconomics asks questions like: Why does the U.S. economy generally experience higher rates of growth than European economies? What causes inflation? What effect does the national debt have on economic growth? etc.