Navigating the Economic Landscape: Microeconomics and Macroeconomics Unveiled

Economics is part of our everyday life. Even though we do not notice, many actions and decisions we take are related to economics. Our need for goods often exceeds the actual things that we are able to attain. All of us, rich, poor, or wealthy, live in a state of scarcity. The poor need more than what they have. They need shelter, clean clothes, and food. The middle class, even though they are able to get what the poor don’t have, they try to collect wealth to get more things that they want, like expensive clothes, properties, and vacations. The rich, on the other side, want to get richer and get things that they don’t have. And even though they have wealth in abundance, they still wish to get some other things they are not getting at the time being.

Division of labor, an idea first introduced by Adam Smith, has to do with specializing the employee at a certain task so that the worker can become trained and focused on his or her duty without being overwhelmed with multiple tasks so he or she can produce more of that specific article. By specializing in different employees to produce specific parts of a final product, the production of the merchandise will increase significantly compared with the case where one employee produces it himself or herself from A to Z.

Microeconomics has to do with personal and family spending. It has to do with employees and businesses at a minor level. Macroeconomics is the field of study that focuses on how the economy of the entire population and the country is doing. The entire production with exports and imports. Comparing Microeconomics with Macroeconomics is like comparing an apple tree with its ruts, trunk, branches, leaves, and fruits being Microeconomics with all the apple trees of a huge plantation being Macroeconomics.