Monthly Archive: November 2015

The Difference Between Macroeconomics and Microeconomics

We have already discussed the definition of economics. To review, economics is the efficient allocation of scarce resources. Basically, this means that economics is made up of the decisions people make on where to assign or distribute their limited resources, so that they get the most out of them. Economics is actually separated into two kinds, or branches: macroeconomics, and microeconomics. “Macro” literally means “large,” or “large-scale.” Macroeconomics is the study of economics on a large scale (we’ll discuss that more later). On the other hand, “micro” literally means “very small,” or “especially small.” So microeconomics is the study of...