Microeconomics - Autumn 1

Question 1

What is the difference between microeconomics and macroeconomics?

Answer 1

Microeconomics studies the behaviour of individual actors, analysing people’s decisions on a smaller scale.

Macroeconomics studies the ‘big picture’ of economics, studying the economy as a whole by large-scale indicators.

Question 2

Name some large scale indicators (for macroeconomics)

Answer 2

Unemployment rate
GDP
Inflation rate

Question 3

What is the advantage of microeconomics over macroeconomics?

Answer 3

There is less controversy, because it’s easier to conduct experiments to test a hypothesis on a micro level.

Question 4

How is social science different from the scientific method?

Answer 4

With economics/social science, there is no definitive answer. It’s more based on opinion, rather than using evidence on a small scale in experiments. More based on a prediction.

The scientific method leads to a definitive answer (Law). They take far less factors into consideration than social science.