Econ/201 Micro Economics Paper

Course Description Principles of Macroeconomics deals with consumers as a whole, producers as a whole, the effects of government spending and taxation policies, and the effects of the monetary policy carried out by the Federal Reserve Bank. Macroeconomics is concerned with unemployment, inflation, and the business cycle. Text Required: Macroeconomics, Roger A. Arnold, 7th Edition, 2005 Recommended: Macroeconomics Study Guide, Roger A. Arnold, 7th

Macroeconomic principles come into play when the whole market or more outside factors are involved. Examples of this in the video game industry, which I work in, would be when the rating system for games are under scrutiny, or when a new console is put on the market as competition. These outside factors affect not only the company I work for, but every other company in the industry, from the hardware manufacturers such as Microsoft and Sony, but also the game studios such as Activision, EA and Rockstar Games. Microeconomic principles are caused by and effect only my company in particular, such

Microeconomics deals with the individual parts in the economy and how they relate to each other. Macroeconomics deals with the totals of these parts in our economy

Anderson, K. (2013). The Difference Between Macro and Microeconomics | Mint.com. Retrieved October 13, 2013, from https://www.mint.com/the-difference-between-macro-and-microeconomics/

Microeconomics focuses on supply and demand. A company would look at ways to increase production so that the company could decrease their prices compared to competitors. This would adjust the equilibrium price of products by increasing the quantity that is available. This allows the company the capability of passing price savings to consumers. Macroeconomics is used as the economy changes such as with inflation. Inflation would cause a company to have a boost of cost in materials from producing their product. This creates a change in quantity to be provided as supply has to be adjusted to meet the decrease of demand from the effects on equilibrium price.

Scarcity is an economic term for a very serious and real-life issue. Scarcity is the problem that results from people having relatively unlimited wants even though the world’s resources are relatively limited. Simply put, there are not enough worldly provisions to satisfy all human wants and needs. The term has many examples. One case is the gasoline shortage in the 1970’s. The resource, gas, was scarce and there was not enough for everyone to freely consume anymore. People had to cut back on driving and there were certain days and times that people were allowed to refuel. Another example is the current drought that The United States, specifically California, is experiencing. The natural resource, water, is very scarce and the population is

Economics is the brief study of production and consumption of resources and to achieve their goals people and societies make choices to use resources. There are two types of economics : Macroeconomic and Microeconomic. Microeconomic deals with price, action of indivduals, and quantity. On the other hand, Macroeconomics focus on whole entire country like income tax,economic growth, inflation and excahnge rate (Hubbard, 2009)."A market is a group of a good or service and the institution or arrangement by which they come together to trade" (Hubbard, 2009). In the marketplace, the model of demand and quantity supplied gives the main idea how to change the price and quantity supplied according to consumer behaviour. The

Government interface is highly demanded to ensure a nation’s economy is able to prosper, recover or sustain as a result to enable stability. Macroeconomics is exhibited in several ways when decisions making skills are engaged to promote prosperity of a nation. For example, the analyzing of the CPI and GDP to help determine a reasonable minimum wage whereas affecting all businesses and

3. Macroeconomics – the branch of economics that studies the relationship among broad economic aggregates like national income, national output, money supply, bank deposits, total volumes of savings, investment, consumption expenditure, general price level of commodities, government spending, inflation, recession, employment, and money supply.

Microeconomics involves supply and demand in an individual market, individual consumer behavior, and externalities arising from production and consumption; while, macroeconomics involves monetary/fiscal policy, reason for inflation and unemployment, and international trade/ globalization.

The Economy is the backbone to society. There are many factors that operate in, and govern our society’s economical structure. Factors such as scarcity and choice, opportunity cost, marginal analysis, microeconomics, macroeconomics, factors of production, production possibilities, law of increasing opportunity cost, economic systems, circular flow model, money, and economic costs and profits all contribute to what is known as the economy. These properties as well as a few others, work together to influence the economy. Microeconomics and Macroeconomics are two major components. Both of these are broken down into several different components that dictate societal norms and views.

Because microeconomics looks at individual transactions and small impacting originations making use of scarce resources. So saving in microeconomics may be good for the individual, however as macroeconomics looks at the bigger picture and looking at how the whole economy useless scarce resources. So in fact one thing may be good for someone, however it may not be good for someone else.

Microeconomics is concerned on issues of an individual, such as firm, consumer, market and public sector organization (Wetherly and Otter, 2014). In addition, Microeconomics is related with millions of consumers and producers in free- market economy that works in decision making with regards to allocation of productive resources among thousands of goods and services (Chand, 2015). There are both theoretical and practical importances in Microeconomics which it helps economic policies promote the welfare of the masses (Chand, 2015).

Economic environment refers to the purchasing power of potential customers and the ways in which people spend their money. If the economy in our country is not stable it will reduce the purchasing power and spending of the consumer. The profit of the company will also reduce due to the economy problem.

The macro environment are the external variables that affect the organization and the organization does not have control over them this being politics, economy, socio-cultural and technology (PEST). While the micro environment helps to identify the industry attractiveness according to (Fyall & Garrod 2005). This definitions shows that this platforms are important as they will help in developing a strategy as the macro will indicate the situation which the business is faced with and