In this week,
the most confuse two definitions I learn from EC 202 is “microeconomic” and “macroeconomic”.
The definitions on the note book are clear but still confuse me a lot. Well I think
many people will have same problems. So I decide to search some example online
and share the knowledge with you.
First,
let’s look the definition on the notebook.
Microeconomics is a branch of economics that studies the behavior of individuals
and firms in making decisions regarding the allocation of limited resources.
Macroeconomics is a branch of economics dealing with the performance, structure,
behavior, and decision-making of an economy as a whole, rather than individual
markets.
Both
from the definition and the words itself, we can know that the most different
between them is the field they mainly about. One is in a small field, the other
one is in a big field. But how big is big?
Microeconomics:
Unit: person,
household, firm, industry
Commonly used
words: supply, demand, market, increase markets by government policy like tax…
Macroeconomics:
Unit: all the
country
Commonly used
words: Balance of payment, economic growth, low unemployment, low inflation, environment,
distribution of income, GDP
The main reason I
summary the commonly used words is because I made lots of mistakes on my
homework. They are many questions to ask distinguish which one is micro or
macro. And even though I think I am totally understand the definitions about
them, I still cannot get 100 percent right! So I summary the “commonly used
word”, and find this really increase my speed and right rate to my homework!
Also I found a
really useful video online, the address is:
Works Cited:
N. Gregory Mankiw, Brief Principles of
Macroeconomics,7th Edition
You don't need to worry about those two courses too much. As long as you keep going to class, you will be fine with them. And be careful about the practice/sample exams before the real exam. Many questions are kind same. Just curious, which one you like better, Micro or Macro?
ReplyDeleteIt is hard to say which I like best. Because Macro is just begining for me.But both of them are very funny!
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