Microeconomics, Macroeconomics and Economic Policy

Managerial Economics and Business Strategy Question 1: Economic Perspectives Microeconomics refers to a study of an individual and business decision-making regarding the allocation of resources as well as the consumption of goods and services (Frank Elia 2012). Since the humans wants are insatiable, a proper economic analysis should be done in order to utilize the scarcely available economic resources. Such an analysis, thus, aims at striking a balance between the desired and the economics resources and, hence, arriving at equilibrium (Baye Prince 2013). Macroeconomics, on the other hand, focuses on the overall effects of the prevailing economic situation in the country on the existence of a business firm (Kishtainy 2012). It aims at analysing an interaction between the firm and the prevailing economic conditions in order to form better strategies of business performance.