PRESENTED BY: HONEY MAY CALLAMAN

2 BRANCHES OF ECONOMICS
✓ ‘Bottom up’ approach
PRODUCT PRICING

CONSUMER BEHAVIOUR

FACTOR PRICING

FIRM’S BEHAVIOUR

INDUSTRY LOCATION
IMPORTANCE:

It deals with the economic decision-

making at an individual and industry
level.
MICRO
ECONOMICS
It provides a framework to help people
make choices.
 MACROECONOMICS
✓ branch of economics that studies how an overall economy— the
markets, businesses, consumers, and governments—behave.
✓ ‘top down’ approach
NATIONAL INCOME

GENERAL PRICE LEVEL

EMPLOYMENT LEVEL

LEVEL OF SAVINGS AND

INVESTMENT

BALANCE OF TRADE AND

BALANCE OF PAYMENT
IMPORTANCE:

It helps us understand how the global

economy works.

It helps us understand how to make

decisions that will benefit not only our
country but also the world.

It helps us predict what might happen

in the future and how we can act
accordingly.
 MICROECONOMICS VS MACROECONOMICS
INDIVIDUAL MARKETS
STUDIES THE EFFECT ON PRICES OF
GOODS AND SERVICES
CONCERNED WITH INDIVIDUAL LABOUR
MARKETS AND CONSUMER BEHAVIOUR
MAJOR FACTORS INCLUDE: DEMAND,
SUPPLY, FACTOR PRICING, PRODUCT
PRICING, PRODUCTION CONSUMPTION,
ETC.
THE ECONOMY AS A WHOLE
STUDIES ECONOMIC GROWTH,
NATIONAL INCOME, INFLATION, GDP,
ETC.
CONCERNED WITH NATIONAL,
TERRITORIAL, AND WORLD ECONOMIES
MAJOR FACTORS INCLUDE: NATIONAL
INCOME, DISTRIBUTION, MONETARY
POLICIES, EMPLOYMENT, GENERAL PRICE
LEVEL, PRODUCTIVE CAPACITY OF
ECONOMY, ETC.
Both are interrelated…

To understand macroeconomics, we've

got to understand microeconomics.

MICRO
ECONOMICS
THANK YOU!