Answer to Question #188035 in Microeconomics for Nii okai

Question

Explain how microeconomics differs from macroeconomics. Which of the following headlines, taken from the various issues of The Daily Graphic, deal with microeconomics:

a. “Nestle Ghana posted a 18% increase in sales”

b. “GRIDCO plans to slash more jobs”

c. “Ghana’s Output Grew by 5.8%”

d. “Housing starts soared 10% in September”

e. “Ghana to Breach key Deficit Target it helped to create”

Explain each issue why it is a microeconomic issue

Answer 1

The main difference between microeconomics and macroeconomics is scale. While macroeconomists study the economy as a whole, microeconomists are concerned with specific firms or industries.

a, b and d deal with microeconomics, because Nestle and GRIDCO are the particular firms, and Housing is a particular industry (market).