Scribd Logo
Upload

Welcome to Scribd!

  • 242 views

    Information Sheet, Class-8 Economics: Chapter 5: Microeconomics and Macroeconomics

    Uploaded by

    Sami Sumon
    This document provides information about microeconomics and macroeconomics. It explains that microeconomics examines the behavior of individual households, firms, and markets, while macroeconomics studies the overall economy. It discusses topics in each area like changes in earnings or industry output for microeconomics, and overall employment and country output for macroeconomics. Additionally, it states that while the concepts differ in scale, microeconomic decisions aggregate to influence macroeconomic conditions and vice versa.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Information Sheet, Class-8 Economics: Chapter 5: Microeconomics and Macroeconomics

    Uploaded by

    Sami Sumon
    242 views2 pages
    This document provides information about microeconomics and macroeconomics. It explains that microeconomics examines the behavior of individual households, firms, and markets, while macroeconomics studies the overall economy. It discusses topics in each area like changes in earnings or industry output for microeconomics, and overall employment and country output for macroeconomics. Additionally, it states that while the concepts differ in scale, microeconomic decisions aggregate to influence macroeconomic conditions and vice versa.

    Original Title

    Chapter-5-Microeconomics-and-macroeconomics

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides information about microeconomics and macroeconomics. It explains that microeconomics examines the behavior of individual households, firms, and markets, while macroeconomics studies the overall economy. It discusses topics in each area like changes in earnings or industry output for microeconomics, and overall employment and country output for macroeconomics. Additionally, it states that while the concepts differ in scale, microeconomic decisions aggregate to influence macroeconomic conditions and vice versa.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    242 views2 pages

    Information Sheet, Class-8 Economics: Chapter 5: Microeconomics and Macroeconomics

    Uploaded by

    Sami Sumon
    This document provides information about microeconomics and macroeconomics. It explains that microeconomics examines the behavior of individual households, firms, and markets, while macroeconomics studies the overall economy. It discusses topics in each area like changes in earnings or industry output for microeconomics, and overall employment and country output for macroeconomics. Additionally, it states that while the concepts differ in scale, microeconomic decisions aggregate to influence macroeconomic conditions and vice versa.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Information sheet, class-8 Economics

    Chapter 5: Microeconomics and Macroeconomics


    5.1 The difference between microeconomics and macroeconomics

    Economics is divided into microeconomics and macroeconomics. As their names suggest,


    microeconomics is concerned with the small scale and macroeconomics with the large scale.

    Microeconomics: Microeconomics is the study of the behavior and decisions of households and
    firms and the performance of individual markets.

    Microeconomic topics include changes in the earnings in a particular occupation and changes in
    the output in the car industry.

    Market: An arrangement which brings buyers into contact with sellers.

    Macroeconomics: Macroeconomics is the study of the whole economy. Macroeconomic topics


    include changes in the number of people employed in the economy and changes in the country’s
    output.

    The connection between microeconomics and macroeconomics:

    Many of the concepts used in microeconomics are also used in macroeconomics, but on a
    different scale. For example, you will later examine the demand for an individual product, and
    the total demand for all foods and services in an economy. You can also look at why the price of
    a particular product may change and why the price level in an economy may change.

    Microeconomic decisions and interactions add up to the macroeconomic picture. This means that
    changes in the micro economy affect changes in the macro economy and vice versa. For
    example, a reduction in the total output of the car industry may result in a rise in the country’s
    unemployment rate. Similarly, a decision by the government to cut income tax rates may result
    in household buying more cars.
    The output of cars influences a country’s total output

    5.2 Decision makers in microeconomics and macroeconomics

    The decision makers in microeconomics and macroeconomics are sometimes referred to a


    economic agents. They are households, firms and government. Households are buyers also
    known as consumers, savers and workers. Firms are business concerns that produce goods and
    services and employ workers and other factors of production. Government is the system which
    rules a country or region. A government produces and provides some products, provides
    financial benefits and regulates the private sector.

    The aims of decision makers:

    Households as consumers, seek low prices and good quality products. As workers, they want
    good working conditions and high pay. As savers they want their money to be safe and to give a
    good return. Firms in the private sector usually try to make as much as profit possible. A
    government wants a strong economy. It may have objectives for the macro economy, including
    full employment of labour. It may also seek to improve the performance of individual markets
    by, for example, taxing the sale of cigarettes.

    You might also like