![]() Industrial structure and public policy (how companies operate and the role of government).The impact of taxes and price controls on markets.Topics you may cover in microeconomics courses What is the role of government in individual investment decisions and other decision-making?.What does it take for companies and businesses to open, grow or shrink, or close?.How and why do companies and businesses produce goods? What price levels do they set for them, and how? Who do they hire, and why?.How do people make decisions about their employment and professional lives? How do they decide what kinds of jobs to seek out and accept? When do they decide not to work – and what kind of opportunity cost is incurred with unemployment?.How do families manage their household budgets? How do they decide what to buy and do?.Key issues in microeconomicsĪ few of the microeconomic questions you might study include: You’ll start by looking at small details and work your way up to the bigger picture. Then you’ll identify the ways their decisions help influence the price of certain items. If you study micro economics, you’ll look at the issues and concerns (like taxes or supply and demand) that go into individuals’ decision-making processes. “Whenever we talk about the actions countries should take, or trade deals or the money supply, each one of those issues is based on the independent decisions of consumers and producers.” “Micro is usually taught first in the college sequence because every macro discussion can be broken down into microeconomic decision makers,” explains Ryan Decker, assistant professor of economics and director of the Center for Financial Literacy at North Central College. Put simply, microeconomics deals with the financial decisions that are made by individual consumers and relatively small groups, such as families or companies. “But it’s important to understand both.” What is micro economics? “Once you understand the difference between micro and macro economics, you’ll probably find that you gravitate naturally toward one or the other,” says Gwendolyn Tedeschi, professor and chair of economics at North Central College. This article will help you get a better grasp of these economic principles. Economics is similar in that it considers the entire economy (macro), as well as the small, individual decisions that feed into that larger economy (micro). Biologists study the way an organism as a whole functions, right? But they also look at the organism’s activity at the cellular level. It can be helpful to look at their relationship by comparing economics to biology. micro economics and their relationship can be confusing, even if you’ve taken AP microeconomics or AP macroeconomics in high school. ![]() These are distinct but related economic areas that overlap and interlock in several ways. Center for Career and Professional DevelopmentĪre you interested in finance, international trade, or the stock market? To fully understand the principles that underlie those and other fields, you need to be well versed in both macro and micro economics.
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