Question

Identify which of the following would be studied as a part of microeconomics, and which would be studied as a part of macroeconomics. You may do this quite briefly. Simply list the letters A thru J - and write "micro" or "macro" next to each one. Please answer this question in one paragraph of about 150 words.

a. Costco MICRO
b. The Bahamas MACRO
c. International trade MACRO
d. GDP (Gross Domestic Product) MACRO
e. Danielle's Plumbing and Heating MICRO
f. Debra's Chicken Wings and Soda Fountain MICRO
g. Inflation MACRO
h. The Red Cross MACRO
i. The City of Toledo, Ohio MICRO
j. The effects of changes in tax policy MACRO

Answer 1

a. Costco MICRO

b. The Bahamas MACRO

c. International trade MACRO

d. GDP (Gross Domestic Product) MACRO

e. Danielle's Plumbing and Heating MICRO

f. Debra's Chicken Wings and Soda Fountain MICRO

g. Inflation MACRO

h. The Red Cross MACRO

i. The City of Toledo, Ohio MICRO

j. The effects of changes in tax policy MACRO

Explanation: This is a branch of economics Which is deals with large-scale or general economic components, such as interest rates and national productivity. Micro economics is the branch of economics Which deals with single factors and how they affect decisions made by individuals.

The major characteristics separating micro and macro economics is very simple to notice. Microeconomics is deals with the study of economics at an individual, group or company level. e.g Debra Chicken wings this focuses on issues that affect individuals and companies in this case the individual is Debra. While Macroeconomics, deals with the study of a national economy as a whole. e.g GDP( gross domestic product), inflation, and changes in tax policy this are all examples of problems faced by every countries economy.