Micro and macroeconomics have become very popular. What are micro and macroeconomics? It is the study of small as well as big economic forces that affect our daily lives. Here are 3 examples of micro and macro economics.
Microeconomics looks at the micro level, which is the smallest area such as a city or a state. For example, when a driver is going down the street, he only sees his city and not a smaller town or state. In other words, the smaller the city, the smaller are the economies of scale.
Next, macro economics looks at the larger area, which is called the country or the world. For example, let's say you were in the United States. You can find out how many people live in a town of about one million. With micro economics, you would only have a town of one million to look at, but with macroeconomics, you have an entire country to look at. The economy of a country would be very different from the economy of a town.
Another important aspect of microeconomics is its relationship to technology. When you go to a computer store, you will see two things: the shop front and the computer. In micro economics, this is called “demand and supply.” You might think that these are two separate things, but they are actually very closely connected. When there are more people who want something, then there will be a greater supply of it. If there are more people who need something, then there will be a lesser supply of it.
Finally, in microeconomics, you look at the price level, which is called the demand. When there is more demand for something, the price will drop. Conversely, when there is less demand, the price will go up. Microeconomics also examines the role of inflation in society. For instance, when the price of gas goes up, it has a negative impact on everyone's lives.
These three examples of microeconomics are all important because they show how the market functions on a micro level. Even if you look at a country, the government's role in regulating markets is significant. They can help to make sure that prices don't go too high, especially when a major company starts investing a lot of money into new research and development. The role of the government is important.