Microeconomics is about money you don't have, and macroeconomics is about money the government is out of. Votes: 4
Microeconomics: The study of who has the money and how I can get my hands on it.Macroeconomics: The study of which government agency has the gun, and how we can get our hands on it. Votes: 4
Microeconomics is the study of how specific choices made by businesses, consumers and governments affect the markets for different goods and services. For example, a microeconomist might examine how price changes affect sales of apples relative to oranges. Votes: 3
Many kids come out of college, they have a credit card and a diploma. They don't know how to buy a house or a car or health insurance or life insurance. They do not know basic microeconomics. Votes: 2
Even philosophies who have denounced pseudosciences like psychoanalysis, have condoned pseudoscientific economic theories like neoclassical microeconomics. It is far safer and easier to criticize Freud and Jung than to criticize Milton Friedman and Friedrich Hayek, because the latter are backed by political movements whereas the former are not. Votes: 2
Governments do not necessarily act in the national interest, especially when making detailed microeconomic interventions. Instead, they are influenced by interest group pressures. The kinds of interventions that new trade theory suggests can raise national income will typically raise the welfare of small, fortunate groups by large amounts, while imposing costs on larger, more diffuse groups. Votes: 2
One of the most important skills of the economist, therefore, is that of simplification of the model. Two important methods of simplification have been developed by economists. One is the method of partial equilibrium analysis (or microeconomics), generally associated with the name of Alfred Marshall and the other is the method of aggregation (or macro-economics), associated with the name of John Maynard Keynes. Votes: 2
It should be possible to emphasize to students that the level of employment is a macroeconomic issue, depending in the short run on aggregate demand and depending in the long run on the natural rate of unemployment, with microeconomic policies like tariffs having little net effect. Trade policy should be debated in terms of its impact on efficiency, not in terms of phoney numbers about jobs created or lost. Votes: 2