The two main approaches to economic analysis are microeconomics and macroeconomics, commonly shortened to micro and macro. Microeconomics looks at economics in terms of events that occur on a small scale. For instance, it will consider the costs and revenues of individual businesses, and issues such as company privatization and demand and supply analysis Independent events in the economy are studied in microeconomics. In macroeconomics, a more broad approach is taken. The area looks at the overall state of an economy and considers various elements as a whole. Subjects such as market structures, globalization and currencies are studied in macroeconomics.
- How micro and macro economics fit together
- The study of economics
Economics investigates what an economy is, and fundamentally how the resources in an economic are allocated. It looks at how workers and companies fit together to provide people with the products and services they need and want.