Microeconomics and Macroeconomics
Microeconomics: Microeconomics is the branch of economics that studies individual parts of the economy. It focuses on small units like A person (consumer) A business (firm) A market (such as the market for milk or mobile phones) Main Topics in Microeconomics: Demand and Supply—How Prices Are Set Consumer behavior —why people buy things Production and cost —how businesses produce goods Market structures —types of competition (like monopoly, perfect competition, etc.) Profit and loss —how firms make decisions Example: If we study how the price of apples is decided in the market, or why a company increases the price of its product, that is microeconomics . Macroeconomics: Macroeconomics is the branch of economics that looks at the whole economy . It studies big things that affect the country or world as a whole. Main Topics in Macroeconomics: National income (GDP) —the total income of a country Inflation —rise in prices Unemployme...