What are examples of individual economic agents? & What is the difference between microeconomics and macroeconomics?

Question

Business

Imani Li

26 July, 18:21

What are examples of individual economic agents? & What is the difference between microeconomics and macroeconomics?

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Answers (1)

Know the Answer?

Jaqueline Santos · Answer 1

The answer is stated below:

Explanation:

Individual economic agent is the one who makes the decision and also recognize or acknowledge how different factors effect as well as motivate different economic groups.

These agents effect the economy by selling, producing, allocation of resources and buying. And the examples of this involve the individuals, households, businesses and the firms.

Microeconomics

1. This study dealt with the behavior of the individual households.

2. This study concerned with households, industries and firms.

3. The objective or goal of this study is to maximize the utility.

4. Limitation of this study is that there is existence of full employment.

5. This study has effect on the price of the good.

Macroeconomies

1. It is the one which studies the economy as a whole, which in turn focus on the whole economies.

2. This study concerned with national income, national output, general price levels and the unemployment and poverty.

3. This study objective is to provide price stability, full employment and economic growth.

4. Limitation of this study is that involvement of Fallacy of Composition.

5. The study of macroeconomies has effect on inflation.