Marco Econmics and Cultural Factors
Uploaded by avgh1121 on Nov 26, 2011
Introduction
Mirco and marco-economic is the study of different kinds of economic. Mirco deal with the little man and how he decide how he is going to conduct business and marco is how our government decide to do business. When studying the economic, it is best to study everything about how our economic is formed to get a real understanding of it.
Every time we made a decision when purchasing anything that decision affects the economic. When businesses have to lower their overhead and lay people off, it affects the economy.
The difference between Microeconomics and Macroeconomics is that microeconomics is basically the study of people and their business choices that they make and macroeconomics is the decisions the country and government decides. There have been a lot of studies done on microeconomics and macroeconomics (Investopedia.com, n.d.).
The decision that people make in businesses concerning the share of their capital and prices of goods and services is called microeconomics; they also have to consider the taxes and regulations that the government creates. Supply and demand and prices in the economy is the main thing that microeconomics deals with; for instant, it would look at a company and try and figure out how the company could product more and lower their cost and still do as well as other companies in the industries (Investopeida.com, n.d.).
Macroeconomics deals with the whole economy and not just one industry. The Gross National Product and what affected it has on unemployment, national income, rate of growth, and price levels are some of the things that are studied in macroeconomics. The raising and lower of net export influences the countries funds account or how GDP would have an effect on the unemployment rate (Investopeida.com, n.d.).
Even though they are different, they are inter-reliant and balance each other because they have areas in which they overlie each other on some of the issues. Microeconomics goes from the little person up to figure out the economy while macroeconomics look at the most senior level in management to figure out the economy. We should study microeconomics and macroeconomics to get a good understanding of how businesses function and receive profits and how the economy is directed and suspected (Investopeida.com, n.d.).
Example of each phenomenon that we see every day would be that micro lowers or raises assessment and supply and demand causes the prices to...