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Microeconomic And Macroeconomics

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1. Explain the terms Microeconomics and Macroeconomics. Give an example of one topic analyzed by each field. Do all topics in Economics fall into one or other of these fields? Give an example of an area in Economics that has both microeconomic and macroeconomic dimensions.

The terms microeconomics and macroeconomics are both similar but study very different behaviors and decision-making skills. The study of microeconomics is the study of “decision making undertaken by individuals for households and by firms.” The study of macroeconomics on the other hand is the study of “behavior of the economy as a whole”, which includes unemployment price level and national income(Miller, p.3, 2014). For example, in Microeconomics topics studied in this …show more content…
While the United States is able to produce a vast amount of goods, we still need to import resources in order to meet market demands; especially in seasonal produce. Since Mexico is such a close neighbor to the United States, trade between the two countries has been inevitable but also quite useful for both parties. Approximately $22.1 billion alone is spent on agricultural imports from Mexico annually into the United States(Ivanvova, 2017). Some of these agricultural resources include avocados and tomatoes, along with miscellaneous fruits and nuts as well. While this can help consumer markets stateside, we also can run into trouble when unforeseen circumstances can disrupt this trade. Circumstances such as poor crop yield and high demand can make for huge economic inflation of this product. Any conflict that may be occurring between the two countries can unfortunately cause problems for importing goods into the United States, as well as problems exporting any goods into …show more content…
When a change in demand occurs, the entire curve will shift to the left or the right on the graph. If just the quantity demanded changes, then a shift along the demand curve line will represent these changes occurring. A consumer example of shifts in demand can be found in the consumer market for gasoline. When the price of gasoline increases, consumer’s still demand gasoline as a necessary good but may demand less. People may start to carpool or find alternative methods to get around town or to work. When the price of gasoline decreases, the demand for gasoline increases because people are willing to fill their tanks at a lower price. People will begin to travel more by car and may go on more trips because airplane ticket prices may be

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