In defining the economy, Alfred W. Stonier economics divide into three groups, namely:
- Descriptive Economics economics that describe the data that explain various phenomena and the reality of the matter.
- Economic theory that economics that provide a simplified explanation of how an economic system works and essential characteristics of such a system.
- Applied Economic Sciences that economics using a common basic framework and analysis provided by economic theory to explain the causes and significance of the events reported by the economists descriptive.
1. Microeconomics (microeconomics)
Microeconomics (often also written microeconomics) is a branch of economics that studies the behavior of consumers and companies as well as the determination of market prices and the quantity of input factors, goods and services are bought and sold.
Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which will determine the price; and how prices, in turn, determine the supply and demand of goods and services further. Individuals who do a combination of optimal consumption or production, together with other individuals in the market, will establish a balance in macro scale; assuming that all other things remain equal (ceteris paribus).
The application of microeconomics:
- Consumption theory
- Theory of production and prices
- Economic welfare
- Industry organizations
- Market failure
- Financial economy
- International trade
Microeconomics is the opposite of the macro economy, which discusses the overall economic activity, particularly regarding economic growth, inflation, unemployment, economy-related policies, as well as the impact of various government actions (such as changes in tax rates) against these things.
Or macroeconomics macro economics is the study of the economy as a whole. Macroeconomic explain the economic changes that affect many households (household), companies and markets. Macroeconomic can be used to analyze how best to influence policy goals such as economic growth, price stability, employment and the achievement of sustainable balance sheet.
The problem faced by the macro economy are:
- Poverty and equity
- Exchange rate crisis
- Foreign debt
- Banks, bad loans
- Inflation
- Economic growth
- Unemployment
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