[This is part of the series: The Complete Guide To Economics 101.]
What Is Microeconomics?
Broadly, the field of economics is divided into two fields: Microeconomics and Macroeconomics.
Microeconomics studies how individuals, households, and companies make decisions in the face of scarcity.
Macroeconomics looks at more of the big picture.
Examples of microeconomics study include:
- What influences the saving rate of the average person in San Diego?
- What percentage of their income does the typical household spend on transportation?
- Are restaurant prices in Texas influenced by the price of oil?
- And how are charitable giving rates in rural counties impacted by a falling stock market?
