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Taylor Swanson
Berz
Communications 1
October 7, 2016
Studying Economics
With over 125 million businesses in the world, it is essential that effective
businesses must be potted and studied in an explicit way. Economics reports
on how our average daily life and interests leads to normally expected
human behavior in the context of goods and services. It also manages all
businesses by either macro or micro varying on what is studied for the
specific business. Micro, meaning on a small scale, studies the supply and
demand interaction within individual businesses for markets and goods.
Macro is the larger part of the scale. Macro deals with the complete outlook
on the economy all the way to the top. Both macro and microeconomics use
a specific approach when studying the economy; these approaches are the
exact opposite of each other, making these studies completely dissimilar.
Either study has the goal of analyzing the production and consumption of
resources. Economists will study either or both approaches to come up with
the little picture, known as microeconomics or make up the big picture,
macroeconomics.
What is microeconomics? Microeconomics studies the economy as a
specific, group or on a company level. Studying only a sliver of the business,
microeconomics originates from the prefix micro, which means tiny.
Microeconomics shows how and why diverse goods are priced. These prices
are determined by customer tendencies. This study generally applies to
markets of goods and services and deals with individual and economic
issues. Topics discussed having to do with microeconomics are consumer
surplus, efficiency, income effect, and market. Separate indicators that relate
with microeconomics are buyers, sellers and business owners. Buyers
indicate and make up the supply and demand curve for resources depending
on their purchases. Microeconomics studies small numbers and is known as
the bottom- point of understanding the economy.
On the complete conflicting side of the balance of economics,
macroeconomics reports the nationwide economy as an entire. The prefix
macro means large. What is macroeconomics? This study is based on how
the aggregate economy behaves. Terms such as inflation, price levels, rate of
growth and gross domestic product (GDP) are studied while overlooking
macroeconomics. Sellers which feed into the GDP have the most to do with
macroeconomics. Macroeconomics reviews all issues concerning the
complete economic functioning of the country.
Microeconomics key focus is the supply and demand for the company.
Microeconomics studies on how properties and services must be estimated in
the economy based on the supply and demand curve. Supply and demand is
the relationship of the availability and the desire pertaining to a specific
resource. If an item is in high demand but limited stock, the price will be
increased than usual. For example, when airfare ticket prices are raised

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during the holidays for travelers. Families are more likely to travel during the
holidays so airlines take advantage to raise the prices for the high demanded
tickets. When the last highly demanded PlayStation 4 is on sale at Walmart
during the holidays, consumers were likely to pay almost double for that last
product in stock. Supply and demand is set up to establish the price of
resources or services.
Macroeconomics main focus is the gross domestic product (GDP). The
GDP calculates the market value of all finished goods and services
manufactured in a period. These estimates are used to determine the
economic performance as a whole country. Unlike microeconomics, where
the main focus is just on how much supply a company needs,
macroeconomics gives results on how much supply was sold. The GDP is an
indicator of the health of the countrys economy. The United States and
China have a high GDP, which is supported by either U.S or China made
products in their own country. Macroeconomics and microeconomics show
complete opposed statistics having to do with products sold within
businesses.
When microeconomics is analyzed on an economy, a bottom-up
approach is taken for the results. A bottom- up approach is studying on
small businesses to help improve investing and capital. An economist will not
be able to understand the whole picture of the business because of how
small of an amount they are studying on the specific business. This highly
detailed approach starts at the basic details of the company. Such as product
performance, customer performance, and expected performance of actions.
Economists use the trial and error learning process during this approach.
Economists look at the small aspects of the businesses, which are at the
bottom hence bottom-up and leading up to larger aspects. These smaller
projections are added together to make a complete picture of the business
economy. This approach is ideal for economists to study such small details of
businesses and the economy.
To be completely opposite of microeconomics, macroeconomics uses a
top-down approach when analyzing the economy. These approaches are
flip flopped of each other. An economist who studies using the top-down
approach will be able to present the whole system of economics. These
reports are much less detailed than the reports for microeconomics. The
top-down approach starts at the top of the specific company, with its
projection on its overall curve. Failures and successes of the company goals
are a major point in these reports. This top-down approach is the best way
for economists to study such a large amount of the economy.
Obviously both micro and macro scales study economics. They both
study the branch of economics, significance that they both study social
behavior which is how they relate to each other. But, having microeconomics
study such a small amount and macroeconomics study the whole large scale,
they do not study the same details having to do with the economy and
businesses. These small studies of microeconomics do, therefor they help to
make up an entire business report for a business. All of micros studies

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contribute into the larger studies of macroeconomics. Macro effects
microeconomics and vice versa. (https://www.keydifferences.com/differencebetween-microeconomics-and-macroeconomics.html#KeyDifferences) If
there is a escalation in oil prices, this will have a major control on inflation.
For example when technology increases costs, this will disable economic
growth. Yes, these studies both are about economics but they branch off on
opposite sides when it comes to the size of the study, what they focus on,
and what approach they use.
Micro and macroeconomics study opposing economic subjects.
Microeconomics studies on a small scale to focuses on the supply and
demand curve while using a bottom-up approach. Macroeconomics studies
on a larger scale and focuses on the gross domestic product (GDP) by using
the top-down approach. Both studies are essential for a successful
business. Without the use of micro and macroeconomics, businesses
wouldnt have ideal goals to reach for the future. Without studying the little
picture of the business, economics wouldnt be made up into a big picture.