How do macro and micro economics work together?

Microeconomics focuses on supply and demand, and other forces that determine price levels, making it a bottom-up approach. Macroeconomics takes a top-down approach and looks at the economy as a whole, trying to determine its course and nature.

What two concepts are illustrated by a production possibility curve?

The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.

What do microeconomics and macroeconomics have in common?

Microeconomics and macroeconomics are not separate subjects but are, rather, complementary perspectives on the overall subject of the economy. In a similar way, both microeconomics and macroeconomics study the same economy, but each has a different starting point, perspective, and focus.

What is a production possibility curve What economic concept is illustrated by PPC support your answer by showing it through a PPC?

The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. Sometimes called the production possibilities frontier (PPF), the PPC illustrates scarcity and tradeoffs.

Why micro and macro economics are complementary to each other?

Micro and macro-economics complement each other because its value depends on the demand of the whole economy at the time of purchase of raw materials or machines, etc.

What is the difference between microeconomics and macroeconomics give suitable examples to differentiate between the two?

Microeconomics primarily deals with individual income, output, price of goods, etc. Macroeconomics is the study of aggregates such as national output, income, as well as general price levels.

How do you explain the production possibility curve?

In business analysis, the production possibility frontier (PPF) is a curve illustrating the varying amounts of two products that can be produced when both depend on the same finite resources. The PPF demonstrates that the production of one commodity may increase only if the production of the other commodity decreases.

How macroeconomics differ from microeconomics explain with an example?

Microeconomics deals with various issues like demand, supply, factor pricing, product pricing, economic welfare, production, consumption, and more. Macroeconomics deals with various issues like national income, distribution, employment, general price level, money, and more. It is applied to internal issues.

What does a production possibilities curve represent a combination?

A production possibilities curve shows the maximum combinations of two goods and services that an economy can produce when resources are fully used and the best technology is applied. In order to achieve the best combination, the economy should produce at the point where marginal benefit and marginal cost are equal.

What is the distinction between micro and macro economics quizlet?

microeconomics is concerned with individual markets and the behavior of people and firms, while macroeconomics is concerned with aggregate markets and the entire economy.