Economics Essay Unit #1
Question #3 How does the study of microeconomics differ from that of macroeconomics? Give one example each of an issue studied in microeconomics and in macroeconomics.
Microeconomics is the study of business decisions by businesses and individuals. It focuses on decisions that are made by people and businesses concerning the allocation of resources and prices of services and goods. According to Nakamura & Steinsson, (2013), “macroeconomics is a branch of economics that studies the behavior of individuals and small impacting organizations in making decisions on the allocation of limited resources.” It focuses on supply and demand and other forces that determine the price levels in the economy. Macroeconomics on the other part looks at business….