What Is The Difference Between Economics And Macroeconomics?

Everyone is always talking about the economy. But what about the economy? Economics deals with a wide range of financial issues from in the market to our personal lives. The economic environment of both the market and consumers is key to success. Economics has a direct effect on the wealth and happiness of almost everything and everyone. Generally, the textbook definition of economics is the study of how society uses resources to produce goods and services and distribute them for consumption (Nickels, McHugh & McHugh, 2016). Economics is basically understanding the use of resources in the production process and in the marketing. Economists sometimes define economics as the study of the allocation of scarce recourses. Economic is then broken down into macroeconomics and microeconomics. Macroeconomics focuses on the market whereas microeconomics focuses on individuals within the market. Although different, both macroeconomics and microeconomics is essential to understanding and evaluating the economy. The study of macroeconomics explains to us why and how economies grow and most importantly what are the factors influencing the economy. Macroeconomics focuses on issues such as economics growth, unemployment, and inflation.

Both of them help us to understand wealth and wellbeing. They help economists to evaluate the financial condition of the country, which affects everyone. The application and principles of economics are used by everyone, even though some may not see it as economics. However, in every transaction and every decision we make, lies the principles of economics. Consumers, producers, businesses and even the government use both macroeconomics and microeconomics in order ensure that they are make the right decision for the benefit of themselves and others. Regardless of where and when, the applications and tools of macroeconomics and microeconomics are used all around us in daily