Microeconomics And Microeconomics : Microeconomics

2349 WordsDec 2, 201410 Pages
Delores Barnes Principles of Microeconomics December 2, 2014 There is a precise distinction between microeconomics and macroeconomics. Microeconomics is a part of economics that examines the decisions and actions of companies, individual firms etc. Macroeconomics is a part of economics that focuses on the study of a country’s economic system or region. The difference between the two is that microeconomics is the decisions people make in regards to their company and the resource , goods and prices involved. Macroeconomics is the economy’s behavior altogether. An example of microeconomics would be the study of a consume or firm’s behavior. An example of macroeconomics would be the unemployment rate. The condition of scarcity means that there is a limited supply of a good, resource of service. The consequences of something being scarce means that because it’s a high demand, people are going to have to pay more to receive it. It isn’t true that all things are scarce because in some situations there is always going to be enough. But it is believed that all things can become scarce. Although goods may become scarce, some goods will only have a shortage. The difference between the two is when there is a scarcity, the good has always been scarce. When there is a shortage that mean that the quantity demanded exceeds the quantity supplied causing the shortage to occur. As time progresses, the shortage will go away. The fact that the United States is wealthy, abundant and affluent
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