I have a question for you: If economics is
simply an issue of examining how people choose
to use THIS many resources to satisfy THIS
many wants, why do we have both macroeconomics
and microeconomics?
Really it's a question of scope: microeconomics
deals with choices of a single entity -- one
product, one price, one consumer, one household,
one business… or even one industry.
Macroeconomics, on the other hand, deals with
the actions of the economy as a whole -- the
country’s income, which we’ll call GDP,
all prices (or “inflation”), the business
sector (which is all businesses), or unemployment
across the entire economy.
NEXT TIME: Positive and Normative Analysis
TRANSCRIPT00EPISODE 4: MICRO VS.
MACRO
