Answer to Question #188325 in Microeconomics for Anima Irene

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 plants 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 microeconomics 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).