What is the difference between microeconomics and macroeconomics?
Answer (1)
Microeconomics looks at small units, like individuals, households, or businesses. It focuses on how people decide what to buy, how businesses set prices, or how a market works. For example, a local bakery deciding how many pieces of bread to bake is a microeconomic decision. Macroeconomics, on the other hand, studies the whole economy. It deals with topics like inflation, unemployment, and economic growth. When the Philippine government plans a national budget or decides to increase the minimum wage, that’s macroeconomics. Both are important because they help us understand small and big economic issues.
