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Microeconomics explains what is likely to happen when individuals make choices in the face of changes in prices, incentives, resources and methods of production.

Thus, microeconomics studies the results of incentives and decisions, especially their effect on the distribution of resources.

Microeconomics is instrumental in showing why different goods have different values and how businesses and individuals benefit from efficiency and exchange.

Individuals in the economy fall into many different microeconomic subcategories and make up the supply and demand of goods/services.

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Macroeconomics focuses upon the operation and performance of an economy, including the influence of Government Policy.

Macroeconomics focuses on the typical goals of an economy such as: economic growth, low and stable inflation, low unemployment and a reduction in inequality.

To achieve these goals, Macroeconomcis explores the options available. These typically come in the form of Government Policy such as: monetary policy, fiscal policy and supply-side policies.

The effectiveness of each of these policies and the extent to which they should be implemented is a key focus of macroeconomics.

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