Macroeconomics is involved with the wide lens aspect of society. To assist understand how microeconomics affects everyday life, let’s study the process of renting an apartment. Businesses also make decisions that result in the best outcome for the business, which may be to maximize profit. Before using microeconomics to understand its use in renting an apartment, it helps to understand some fundamentals. Businesses set prices and make other decisions based on microeconomics. As a result I decided not to pick that choice and instead spend my money on my alternatives. Business economics applies economic theory and quantitative methods to the study of organizations and the relationships that organizations have with labor, capital, and markets. This explains why housing costs in New York are high, according to the principles of microeconomics just outlined. Therefore, I would like to apply a place in MSc Economics, write all the interesting facts of today´s modern life, including correct and simple explanations, so that anyone can understand all the topics without having doubts of the concepts and of the more difficult topics of economy. When making decisions we don’t tend to first look at leading economic indicators. Accessed Sept. 10, 2020. Importance of the macroeconomy on our daily lives. For this you will have to take into account your income and how much money you are looking to spend on housing, in such a way as to maximize your utility or satisfaction. Economics can be classified into two main branches, which are macroeconomics and microeconomics. In order to get those things, people have to spend money. It is highly helpful in the formulation of economic policies that will promote the welfare of the masses. The prices that consumers will pay depends on the supply of a specific good, such as an apartment, as well as how much others are willing to pay for it. In short, it guides us about the scarcity of resources and the alternative use of them. In other words, macroeconomics focuses on the broader large scale economy of a society. The Birth of Macroeconomics. California State University Northridge. These principles include the law of supply and demand, opportunity costs, and utility maximization. Accessed Sept. 10, 2020. WhiteHouse.gov. Economics is a social science that deals with the life-cycle of goods and services. Personal finance is all about managing your personal budget and how to best invest your money to realize your goals. The Internet was mostly used as assistance in completing this essay. Paragraph 6. “Choice and Opportunity Cost” is one of the most important concepts of Microeconomics that I found it relative to my everyday life. Then I will take it back to the role of the government with externalities which will then lead to how externalities are relevant in my daily life as a student at Cal State Dominguez Hills and why it is important to my readers to understand why. Homeowners Insurance, so they make calculated microeconomic decisions, Microeconomics uses certain basic principles, An In-Depth Look at COVID-19’s Early Effects on Consumer Spending and GDP, Microeconomics Topic 1: Explain the concept of opportunity cost and explain why accounting profits and economic profits are not the same, Section 01: Consumer Behavior: Law of Diminishing Marginal Utility. Microeconomics focuses on the role consumers and businesses play in the economy, with specific attention paid to how these two groups make decisions. Economics is a branch of social science focused on the production, distribution, and consumption of goods and services.

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