How will the firm finance its resources- raw material, laborers, land, capital? Phone :+91-011-41802240, 41802241, What are the first few questions that pop up in your head when you need to understand the market? Any increase or decrease in the net export/import affects the nation’s capital income. How do households and individuals spend their budgets? The basic difference between microeconomics and macroeconomics is that Micro is the study of individuals and business decisions while macroeconomics while macro studies the decisions of the governments and countries. Microeconomics and Macroeconomics are the two main categories of economics. Macroeconomics examines gross domestic product (GDP) and gross national product (GNP). A business firm will focus on maximizing its production so that they can sell their product at a lower rate as compared to other producers. The Scope of Economics Microeconomics and Macroeconomics macroeconomics The, 1 out of 1 people found this document helpful, examines the economic behavior of aggregates—, income, employment, output, and so on— on a national, Microeconomics questions how many people will be hired (or, fired) this year in a particular industry or in a certain, geographic area and focuses on the factors that determine. The import and export policies of the country are also studied and explained by macroeconomics. What determines the products and how many will firms produce and sell? The monetary and fiscal policies created by the government authorities are constructed, evaluated and forecasted using these variables. These microelements can be a single individual, a household, or a business firm. What determines the prices of these products? Therefore, macroeconomics also analyses the nation’s capital income. in an effort to test hypotheses and theories. What are the Government Jobs Options Available for Engineers? Hence, the scope of business economics is wide. This means that it does not focus on too much risk as compared to macroeconomics which looks at … The nature and scope of microeconomics is specified to a particular economy. Macroeconomics is generally focused on countrywide or global economics. CHAPTER 1 The Scope and Method of Economics The Scope of Economics Microeconomics and Macroeconomics Microeconomics is concerned with household income; macroeconomics deals with national income. What should be the country’s monetary and fiscal policies. Each phase has its own level of GDP, unemployment, and inflation. Middle East Technical University - Merkez Campus, Final Exam Multiple Choice Spring 2016 Version B.rtf, Middle East Technical University • ECONOMICS 101, Middle East Technical University - Merkez Campus • ECON 101, Wallace State Community College • ECON 232, University of Maryland, Baltimore County • ECON 101, Middle East Technical University - Kuzey Kıbrıs Campus, Middle East Technical University • ECO 101, Middle East Technical University • EEE 302, Middle East Technical University - Kuzey Kıbrıs Campus • ECO 101, Middle East Technical University • ECON 102. If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. On what basis will the consumer choose the brand of product they wish to take? Macroeconomics scope is wide and it studies the economic variable affecting the economy as a whole and other economies as well. Microeconomics studies the behavior of individual households and firms in making decisions on the allocation of limited resources. To study human behavior in the market, microeconomics analyses the producer and his choices as well as the consumer’s choices.