Microeconomic concepts

The economy is a social science that is concerned with making decisions on how to distribute the factors of production available to achieve the generation of goods and services that society continually requires. The two great difficulties it faces are: how to distribute the factors of production optimally in conditions of scarcity and how to satisfy the economic needs that exceed the productive capacity of society. In short, how societies use their scarce resources (factors of production) to satisfy the unlimited needs of the population. Economic science is subdivided into:

Microeconomics, in general terms, is the study of the economic behavior of particular and individual markets in the coordination of the options they choose regarding economic decisions of daily living.

Macroeconomic, in general terms, is the study of the general economic behavior of the country; the rise and fall of economic activity in the level of production, employment and income; the analysis of economic fluctuations relative to the growth trend in the short and long term of the country's economy.

Instructions:

1) Based on the above, examine the following expression:

Economics is a challenging discipline, but it is also exciting and rewarding.

2) In your analysis you should:

• Explain, in your ownwords and with examples, what is the difference between microeconomics and macroeconomics.
• Compare economic science with other disciplines, such as accounting, marketing, and finance, and differentiate them.
• Describe what the uses of the economy are and how it can explain everyday market situations.