Reference no: EM133083465

Microeconomic concepts

The economy is a social science that is concerned with making decisions about how to distribute the available factors of production in order to generate the goods and services that society continuously requires. The two great difficulties it faces are: how to distribute the factors of production optimally under conditions of scarcity and how to satisfy economic needs that exceed the productive capacity of society. In short, how societies use their scarce resources (factors of production) to satisfy the unlimited needs of the population. Economic science is subdivided into:

Microeconomics, in general, is the study of the economic behavior of particular and individual markets in the coordination of the options that they make on economic decisions of daily life.

Macroeconomic, in general terms, is the study of the general economic behavior of the country; the rise and fall of the economic activity of the level of production, employment and income; the analysis of economic fluctuations relative to the short and long-term growth trend of the country's economy.

Economics is a challenging discipline, but it is also exciting and rewarding.

1. What is the difference between microeconomics and macroeconomics? Examples

2. Compare economics with other disciplines, such as accounting, marketing, and finance, and differentiate them.

3. Describe the uses of the economy and how it can explain everyday market situations.