Question

What is the difference between Marco Economics and Micro Economics? Why is it important for business leaders to be aware of both Marco and Micro economics? How can business leaders stay informed on economic matters? After briefly answering these questions be sure to comment on two of your peers posts.

Answer 1

MICRO ECONOMICS- micro economics implies the study of the aspect of economy at individual level.it considers and concerns with the problem of economy concept such as demand and utility concerned with the consumer, production theory of a firm, cost concept of an individual firm, risk concerned with an individual firm and other aspects.

MACRO ECONOMICS- macro economics is concerned with the problem of economy at aggregate level.concept of national income , problem of unemployment in an economy, concept of aggregate demand concept of aggregate supply , general price level of a particular type of industry in the economy, foreign exchange rate, government budget , balance of payment etc are the concept defined under the section of macroeconomics.

importance of micro economics for the business man-

1. a business man should be aware with the micro economic factor concerned with his/ her business to ascertain the optimum price level and elasticity of price and demand concerned with the product.
2. to ascertain the production capacity concerned with the firm whether it is executing the production at its first phase second phase or third phase.
3. to ascertain the concept of cost of the firm whether it has attained the least cost of production and reserved the excess capacity in the economy.
4. to being aware the risk management concept and type of market like perfect , monopoly , monopolistic , oligopoly concept of the market.

importance of macro economic concept for the business person-

1. macro economic factors helps to determine the per capita income and national income in an economy which represents the trend of economic growth and standard of living of people, therefore where the PCI is high then non essential items can be produced along with the essential items.
2. macro economics study reveals the level and phase of economy that when there is inflation in an economy or deflation exist.
3. macro economic study reveals that whether the funds spent by the government would be useful for a particular sector or not?
4. it also provide the determination for the foreign exchange rate which is helpful for the foreign trade execution.

businessmen can keep themselves updated with following manner-

1. NEWS CHANNEL
2. NEWSPAPERS
3. GOVERNMENT POLICIES
4. ECONOMIC SURVEY
5. PERSONAL OBSERVATION AND ANALYSIS

COMMENT ON THE POST-

In the recent COVID-19 situation it becomes very essential to study the concept of both micro and macro economic factors.

• businessmen came to know about the elasticity and sales and profit maximization concept and importance of cost concept can be obtained very useful in this tough times.
• macro economic factor suggested in which phase the economy is facing towards and which policy of government will make what impact on the economy.