“Microeconomics and Macroeconomics “

 > Explanatory Article by Marios Kyriakou, MSc Economics


About the author: Marios Kyriakou has a bachelor’s degree in Economics from the University of Cyprus and a master’s degree in Economics from the University of Warwick. He is also a holder of CySEC’s Advanced Certificate in Financial Services Legal Framework and a professional in Online Trading, Forex and CFDs with more than 7 years of experience.

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<Last updated 13.04.2020>

Dear reader,

Hi! If you are interested in Economics, I’ve prepared the below to help your understanding. You should take a look at this short article where I explain the difference between “Microeconomics and Macroeconomics.”

The great science communicator Carl Sagan once said: “the earth is a very small stage in a vast cosmic arena”. And in this small stage we are all performing economic activities. Why? because we want to live, to sustain our existence by satisfying our needs, and that pursuit requires us to utilize the resources we have available and can be found in this small stage.

A scientist, or better to say, a researcher, is an observer of the world. This individual observes and records the activities of human beings, how are these beings communicate with each other? What types of economic activities they perform? What do they do when prices fall? How do they react when a discount is advertised? How do they take decisions in times of crisis or in times of prosperity? All these questions belong to the field of social sciences and so you understand now that Economics belongs in the category Social Sciences.

In the area of economics, the economist studies the behavior of individuals, groups and even small or large organizations. That person will carefully collect data and information, analyze them and use scientific methods to build theories that can help in explaining that behavior.

The question is…  Why? The answer is: people care about the economy. We want to know about the economic activities of all people in this “stage”. We are all part of it and our quality of life depends on how well we are all performing. How well the economy as a whole is performing that is.

Economics is composed of two “branches”, Microeconomics and Macroeconomics.

> In Microeconomics, we study the behavior of individual entities. We analyze the behavior of households, businesses, industries, different markets, labor unions, or trade associations.

> On the other hand, in Macroeconomics, we are interested in studying the behavior of the aggregate economy, so it examines aggregate levels of income, employment, the levels of interest rates, prices, inflation, and the famous business cycles.

Economic Science exists because people need help in solving their main economic problem. To sustain life, and improve our quality of life, we inevitably require the use of resources on a continuous basis.


 

“I hope I am clear on this one. If not, contact us on social media and we will do our best to help you.

Thank you for reading my articles and watching my videos.”

Marios Kyriakou

References:
Ιωάννου-Σεργίου Μ., Μάτση Μ., Σάββα Ν., Σταύρου-Παπαδοπούλου Λ., Οικονομικά Α’ Λυκείου, Α΄ Έκδοση 2016. Υπηρεσία Ανάπτυξης Προγραμμάτων, Κύπρος.
Βλαδιμήρου-Παναγιώτου Β. και Κουζαλή-Σωτηρίου Ε., Οικονομικά Β’ Λυκείου, Κύπρος, Α΄ Έκδοση 2016.  Υπηρεσία Ανάπτυξης Προγραμμάτων, Κύπρος.
Βλαδιμήρου-Παναγιώτου Β. και Κουζαλή-Σωτηρίου Ε., Οικονομικά Γ’ Λυκείου, Κύπρος, Α΄ Έκδοση 2017.  Υπηρεσία Ανάπτυξης Προγραμμάτων, Κύπρος.
Besanko, David Braeutigam, Ronald R. Gibbs, Michael, 2011, Microeconomics, Hoboken: John Wiley, 4th ed,
International student version
Frank, Robert H., 2010, Microeconomics and Behavior, New York: McGraw-Hill Irwin, 8th ed.
Estrin, Saul Laidler, David E. W. Dietrich, Michael ., 2008, Microeconomics, Harlow: FT/ Prentice Hall, 5th ed.

Disclaimer: This article is intended for educational purposes only and does not replace independent professional judgement. Its purpose is to act as a complementary educational service to society, promoting personal development and social, economic and cultural progress of citizens. While this content has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the creator to the accuracy or completeness of the information presented or any other written or oral information made available to any interested party and any such liability is expressly disclaimed.

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