# Differences Between Micro And Macroeconomics

797 Words 4 Pages
1. What is the difference between micro and macroeconomics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one.
A) The difference between micro and macroeconomics is that microeconomics deals with how individuals and firms make decision in the face of scarcity and the impacts of the decision on the market. Hence, microeconomic focus on a part of the economy of a country. While macroeconomics deals with how a nation makes a decision in the face of scarcity and the impact of the decision on the economy. Hence, macroeconomic focus on the economy of a country as a whole.

B) An example of a microeconomic phenomenon is the rise in the price of Dangote cement from ₦1700 to ₦2300.
An example of a macroeconomic phenomenon is the level of employment and unemployment in a country.

2. Go to the internet and find a recent article that you find that is relevant to this section. Provide the link, and a summary of the article and discuss, in a few words, why you found the article interesting.
A) The article that I find relevant for this section is “Understanding Opportunity Cost: How \$200 Sneakers Could Cost You \$75000”. (Marquit M., 2015)

B) The link for the article is as stated below:
…show more content…
The cost of producing one block then is ₦87 and we sell at ₦109. And we were able to be producing and supplying 4000block per day using our equipment. The total cost and revenue are ₦348,000 and ₦436,000 per day respectively. Because of increase in demand of more blocks from several customers, I had to increase output to 6000blocks per day. So I decided to check what is the cost implication of producing one block if am to rent the equipment. I discovered that the cost is ₦96 making the total cost ₦348,096 and the revenue

• ## Inventory Turnover In Ibm

To compute the average total of assets, you take the beginning asset balance, add it to the ending asset balance and divide the results by two. The results should give you an idea of how well the company is using its assets to generate sales. For every dollar of assets invested, IBM is producing \$.76 of sales for 2014 and \$.80 for 2013. The industry average is producing \$1.6 sales for every dollar of assets invested. In this case, a high ratio is desired and to improve your company’s turnover ratio you would need to increase the…

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• ## The Pros And Cons Of Fiscal And Monetary Policy

The monetary policy is the government manages the economy by controlling the money supply through regulation in interest rates. While both policies can help benefit the economy to either increase or decrease the consumer spending, the people are debating which policy is more effective. The most advocate speakers, John Keynes, has recommended…

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• ## Differences Between Market Risk And Specific Risk

Systematic risk which is known as market risk that refers to the variation in the returns on securities, which arises due to macroeconomic factors of business such as social, economic and political factors. Changes to the government policies cause an effect or influences systematic risk. There are different types of systematic risk such as interest risk which refers to a risk that is cause by the fluctuation in the rate or the interest from time to time and affects interest bearing securities like debentures. Another is inflation risk is referred to as purchasing power risk and it affects the purchasing power of an individual. The last is market risk which is a risk that influences the price of a share which refers to the prices that will rise or fall consistently over a period of time along with other shares of the market (S,…

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• ## Simple Interest Formulas Assignment: Interest And Loan Concepts

By paying the \$10000 45 days in advance I was able to save \$49.25. If I did not pay any in advance I would of paid \$30,300 total. Question 4: (10 Points) Find the bank discount and proceeds using ordinary interest on an unsecured promissory note made to Leslie Smith for \$12,000 at 7% annual simple interest from June 15 to September 15 for this year. Use the steps below to find your…

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• ## Orion Corporation Case

What is the unit product cost for the month under absorption costing? A) \$74 B) \$89 C) \$69 D) \$84 15. What is the net income for the month under variable costing? A) \$10,600 B) (\$17,000) C) \$16,600 D) \$6,000 16. What is the net income for the month under absorption costing?…

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• ## Jones Corporation Case Study

The supplier in the above scenario now decides to offer a volume discount. They will sell the crystal figurines at \$8 per unit for orders of 250 units or more. Answer the same set of questions. a. How many units should the firm order each time?…

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• ## Analyse The Effect Of The AS/AD Model

(Pan Pylas http://www.3news.co.nz/Survey-finds-Eurozone-recovery-slowing/tabid/417/articleID/322427/Default.aspx) In conclusion the short run output can be above or below the natural level of production and therefore output is never the same as the natural level, as eventually production goes back to its natural level through changes in the price level in the medium to long term. Fiscal policy is one of two tools the government use to manage the economy. It involves the use of borrowing, government spending and taxation to affect the growth of jobs, output and aggregate demand. This policy can be used to change people’s spending ways, distribute wealth and lastly a use of intervention to correct failures in the…

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• ## Economic Effects Of Inflation In India

The tax and expenditure programs levied and undertaken by the government are the drivers of the fiscal policy. Monetary Policy: The Monetary Policy is governed by the nation 's central bank (in this instance, the RBI) to control the money supply in the economy to maintain price stability and attain high economic growth. The central bank achieves this by controlling the interest rates. Monetary policy refers to the adoption of suitable policy regarding interest rate and the availability of credit. Monetary policy is another important measure for reducing aggregate demand to control inflation.…

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• ## Money Supply Concept

The multiplier effect may lead to a change in cost of production which in turn affects the price level. However, the neo-Keynesian theoretical exposition combines both aggregate demand and aggregate supply. The neo-Keynesian school assumed a Keynesian doctrine on the short-run and a classical view in the long-run. The simplistic approach is to consider changes in public expenditures or the nominal money supply and assumes that expected inflation is Zero. However, aggregate demand increases with real money balances and decreases with the price level.…

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• ## Difference Between Fiscal And Fiscal Policy

In today’s society, many households and business are affected by monetary and fiscal policy in regard to real income and the increase in spending. Monetary policy affects the way society spends when the Federal Reserve regulates the amount of money in circulation. The Federal Reserve controls the money supply by the interest rates offered to banks. Therefore, more money is borrowed by the banks at lower interest rates which means more money will be in circulation. In contrast, higher interest rates yield less money circulation in the economy.…

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