Pros And Consequences Of Microeconomics

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Predicting the Unpredictable Rupert Murdoch, the CEO of Fox News, once stated, “I 'm not an economist and we all know economists were created to make weather forecasters look good.” (1). There is some satire in that quote, however, it alludes to the complexity and unpredictability within the field of economics. Furthermore, the makeup of people and the assumptions that have to be made in economics adds another variable in the algorithm of economics. Meteorologist understands that Mother Nature is unpredictable; however, the forecaster still gives you a five-day forecast with their assumptions. Likewise, economists make assumptions on what the economy will do based on the facts available. In either case, the outcome may not be the same as …show more content…

The fundamentals of microeconomics deals with how individuals or individual firms make decisions, furthermore, what variables will affect those decisions and how they will affect them. For example, time, time is a scarce resource. Time is something that people find valuable, and people have to make decisions everyday on the best way for them to spend that time. For instance, my decision to my homework and continue my educations versus that of my wife’s which is to go shopping for fall clothes. My decision to study versus my wife’s decision to go shopping has two very different outcomes. Furthermore, how we use our scarce resources, and the decisions that we have made, will have different effects on the …show more content…

This means that macroeconomics studies and analyze the bigger picture; furthermore, it aims to understand and predict what will be good for the entire economy. The fundamentals of macroeconomics understands the bigger picture. For example, policies within an organization or government, the effects of raising taxes on certain goods, or the choice to regulate certain scarce goods or not. The goal is to understand how these will affect the economy as a whole, rather than the individual. To illustrate, macroeconomics is not concerned with the interest rate of a home loan, however, they are concerned with what make interest rates as a whole rise or

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