Difference Between Microeconomics and Macroeconomics.

Difference between Microeconomics and Macroeconomics

Gone are the days when all, the students aspire to be was either a doctor or an engineer. Now students are exploring different subjects and are excelling in them. One such subject is economics which is taking hype among the students and for all the right reasons. The term economics has been derived from the Greek word “Oikonomia” which means the management of family or the household.  This post is all about economics, the main two branches of this major, and the career choices that it has to offer. The subject of economics has so much to offer. As George Bernard Shaw said;

“The economy is the art of making the most of life. The love of the economy is the root of all virtue.”

Accounting, economics, finance, statistic, etc are all intermingled with one another. Students can choose this field not only to understand the complex markets but also to build problem-solving techniques and they don’t need to be afraid of writing projects anymore because now they can avail themselves of economics homework writing service, statistics assignment assistance, and so on. So; all they need is to choose the field of their interest within the subtext of economics and just go for it.

Economics:

Economics can be defined as the study of mankind in the ordinary business of life. It studies the production, distribution, consumption, and services of different goods. These processes determine the allocation of resources within a group. Economics is the study of the operation of economic organizations, and economic organizations are social arrangements to deal with the production and distribution of economic goods and services (Coase, 2019). The purpose of this subject is to understand the functioning of the economic system and to determine its strengths plus weaknesses of it.

Economics VS Accounting:

Students often confuse economics and accounting as the same thing but they are not; even if they are related to each other at some expense but accounting is more about the calculation of all the production whereas economics is about the products of the goods. Accounting can be a tough nut to crack at the beginning which is why students seek help with accounting homework but once they grasp the subject, it gets easy.

Branches of Economics:

There are two main branches of economics known as macroeconomics and microeconomics. Microeconomics is based on the choices of individuals and macroeconomics is based on the behavior of the economy as a whole. Following are some of the prominent differences between the two;

1.    Macroeconomics Vs Microeconomics- Definition:

Microeconomics can be defined as the decisions made by people and different businesses about the allocation of goods plus the prices at which these goods will be traded. Taxes, regulations, and government legislation are applied to this category of goods.

On the other hand; macroeconomics is concerned with the behaviors of the country and how different policies of the country are impacted as a whole. It analyses the industries and the related economies.

2.     Macroeconomics Vs Microeconomics- Purpose:

The purpose of microeconomics is to analyze the mechanisms of the market that establishes the relative price of goods and the services provided. It allocates limited resources among alternative uses. On the other hand; the goal of macroeconomics is to keep check economic growth, full employment, and stable prices.

3.     Macroeconomics Vs Microeconomics- key factors:

There are five main factors that are considered in microeconomics. These are as follows:

  • Utility theory; states the consumer’s purchase and the quality goods that they can afford.
  • Production theory; is about the conversion of materials into goods. It depends upon the business how many resources they will use and the goods they will produce.
  • Supply, demand, and equilibrium; this theory roams around the available supply, the consumer’s demand, and the translations of the prices.
  • The labor theory of economics; this theory studies employees and employers. The pattern of their wages, employment, and income.
  • Incentives; this is the theory that considers the incentives to motivate the individual regarding certain economic and financial decisions. 

Similarly, there are some key factors that are taken into consideration under the subtext of macroeconomics. These factors indicate the financial growth and are as follows;

  • Interest rates; higher interest rates indicate a higher value for the currency of the national economy.
  • Inflation; the rapid inflation of the country is the direct measure of economic instability.
  • In fiscal policy; large banks and governments make the decisions that affect the interest rates, inflation, and federal budgets.
  • National income; this combined account of money that the country generates is helpful for economists to figure out the economic growth of the country.
  • Employment; the greater the employment of the citizens will be the higher will be the amount of money in circulation which will boost the economy likewise.
  • Retail sales; this is yet another factor that affects the economy of the country.  Economic growth increases with the increase in retail sales.

Besides these; the business cycle, international trade, and gross domestic product also affect the economical growth of the country.

Career choices in the field of economics:

Now that, students have gotten an idea about economics and its two main branches, it will be even better if they get to know about the career choices that this field has to offer students. Following are some of them;

  • Chartered accountant.
  • Data analyst.
  • Economist.
  • Financial risk analyst.
  • Retail merchandiser.
  • Auditor.
  • Statistician.
  • Financial consultant, etc.

Conclusion:

Economics is one such subject that comes with a large range of skills and even larger career opportunities. A subject that is more developed than other forms of social sciences that forecast the possibilities of economic growth in any company. Economics that you develop decision-making and problem-solving techniques. Hopefully; this post will prove to be helpful for students in comprehending economics, its two main branches, and the possibilities that this field brings with it.

Bibliography

bestassignmentwriters. (2022, July 23rd). Accounting VS Economics: Which Study Can Elevate Your Business? https://bestassignmentwriter.co.uk/blog/accounting-vs-economics-which-study-can-elevate-your-business/ .

Coase, R. H. (2019). Economics and Contiguous Disciplines. In R. H. Coase, The Organization and Retrieval of Economic Knowledge (pp. 481-495).

By Christopher

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