Macroeconomics is a study of the structure, performance, and decision-making of the economy as a whole. Economists use GDP, unemployment rates, and price indices to follow economic trends. GDP (Gross Domestic Product) is the total output of a country. The GDP can be used as a measure of a nation's standard of living. The GDP is monitored closely as an indicator of economic health. See the link to get the most recent update on the U.S. GDP. Unemployment rate is a percentage of the population that is looking for work, but do not have a job. The unemployment rate does not include people who are unemployed, but are not looking for a job. Price indices are the average price for an entire group of goods or services.

MicroeconomicsMicroeconomics is the study of the behavior of how individuals, households and firms make decisions to allocate resources. The main tenants of Microeconomics are Supply and Demand and what changes them. Demand relates to consumers in the market and can be plotted with Price on the y axis and the quantity demanded on the x axis. For Demand Price has an inverse relationship to the Quantity Demanded. For supply there is a direct relationship between Price and Quantity Supplied. Microeconomics is the branch of economics that analyzes the market behavior between producers and consumers to understand the business-making process made by firms and households. It is concerned with the interactions between producers and consumers as well as the factors that influence choices made by the buyers and sellers. It provides mathematical insight to predict market activity. Compared to Macroeconomics, microeconomics zooms in on the big picture at the smaller details and focuses on the theories of supply and demand and how individual business produce a certain amount of a good as well as its price.


Microeconomics is one of the main fields of the social science of economics.

It considers the behaviour of individual consumers, firms and industries.
Microeconomics is a branch of economics that studies how individuals, households, and firms make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold.
Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the supply and demand of goods and services.
Microeconomics has been called “the bottom-up view of the economy”, or “how people deal with money, time, and resources.” One of the goals of microeconomics is to analyze market mechanisms that establish relative prices amongst goods and services and allocation of limited resources amongst many alternative uses.
Microeconomics analyzes market failure, where markets fail to produce efficient results, as well as describing the theoretical conditions needed for perfect competition.
Significant fields of study in microeconomics include markets under asymmetric information, choice under uncertainty and economic applications of game theory.

"Microeconomics." Science Daily: News & Articles in Science, Health, Environment & Technology. Web. 01 Mar. 2011.