Essay on Difference Between Microeconomics And Macroeconomics
Unit 1: Principles of Microeconomics
By Camille Telesford
In this paper I will discuss the difference between microeconomics and macroeconomics along with their phenomenon examples, a summary of an article and why it is interesting, an example of sunk cost and how it differs from a marginal cost and finally an explanation of marginal analysis in my problem solving.
According to the Principles of economics textbook, Microeconomics is concerned with the study of the market system on a small scale. It looks at the individual markets that make up the market system and is concerned with the choices made by small economic units such as individual consumers, firms or government agencies. On the other hand, macroeconomics is the aggregate performance of all markets in the market system and is concerned with the choices made by the large sub-sectors of the economy.
One example of a microeconomics phenomenon is the pricing policy while one of a macroeconomics phenomenon is Inflation.
Summary of article “Brexit means...a lot of complex trade decisions” found at: http://www.economist.com/blogs/buttonwood/2016/11/tradeoffs?zid=295&ah=0bca374e65f2354d553956ea65f756e0 According to the Brexit article, the British Government has to decide the type of tradeoffs needed after the European Union has left. This government seems to want to take back control. It was stated that, ‘The single market is an idea that Britain originally pushed for—a trading area…