Allocation of resources

Microeconomics and macroeconomics

 MICRO AND MACRO
 The difference between micro and macroeconomics is
simple.
 Microeconomics is the study of economics at an individual,
group or company level.
 Macroeconomics, on the other hand, is the study of a
national economy as a whole. 
 Economic agents
 Economic agents are any individuals, institutions or groups
of institutions who undertake economic activities and make
economic decisions.
 Different economic agents have different aims.
Economic agents Activity Aims
Household • Consumers • Seek low prices and
• Savers high quality goods
• Workers or labourers • Want better working
conditions
• High pay

Firms • Producers • make profits

• Employers

Government • Produces • Strong economy

• Provides financial benefits • Jobs for everyone
• Collects taxes • Welfare of people
• Regulates private sector
Circular flow of money