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Chapter 1: Problem 5

What is the difference between microeconomics and macroeconomics?

Short Answer

Expert verified
The difference between microeconomics and macroeconomics lies in the scope that they cover. Microeconomics focuses on individuals and businesses, while macroeconomics looks at the bigger picture and examines the economy as a whole.

Step by step solution

01

Defining Microeconomics

Microeconomics is a branch of economics that studies the behavior of individuals and businesses in making decisions regarding the allocation of scarce resources and the interactions that happen among these individuals and businesses.
02

Defining Macroeconomics

Macroeconomics, on the other hand, is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies.
03

Highlighting the Difference

The main difference between these two branches is in scale. Microeconomics focuses on individuals and businesses, looking at decisions on a smaller, more detailed level. Macroeconomics, on the other hand, takes a broader view, examining the economy on a national or even global scale.

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Most popular questions from this chapter

According to economists, almost everything we do has costs and benefits. Identify the costs and benefits of each of the following: going to the dentist for a checkup, doing your homework, and getting an extra hour of sleep.

Gallagher is planning on going to college in a few months. The tuition is \(\$ 10,000\) a year. Assuming that Gallagher goes to college for four years, is the opportunity cost of his attending college \(\$ 40,000 ?\) Why or why not?

Is the opportunity cost of attending high school the same for all high school students? Explain why or why not.

If there were zero opportunity cost to everything you did, would you ever face a trade-off? Explain your answer.

Because scarcity exists, people must make choices. Explain why.
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