السبت، 28 أبريل 2012

micro and macro economic



Q.1 what is the difference between microeconomic and macroeconomic?
Answer.
a.      Microeconomics
Is a branch of economics in which there is the study of how the individual parts of the economy, made up of households and firms, make decisions in order to allocate a limited amount of resources? These decisions are usually done in markets where goods and services are being bought and sold.  Microeconomics examines how all these decisions on the individual part have an impact on the supply and demand of goods, which in turn determine price and which itself determines the supply and demand of these goods and services. Microeconomics is not just about how individual parts affect the economy, but it is also about the effects of economic policies like taxation on the economy. Microeconomics also has the goal of analyzing market mechanisms in order to establish prices among goods and services and to allocate limited resources through alternative uses.
b.      Macroeconomics
In contrast to microeconomics, macroeconomics deals with the performance, behavior, decision-making and structure of the entire economy. This can be the national economy, the regional economy, or even the world economy. Typically, macroeconomics will look at GDP, unemployment rates and price indexes to determine how the economy is functioning. Macroeconomists will create models as well that look at the relationships between:
  1. National income
  2. Output
  3. Consumption
  4. Inflation
  5. Unemployment
  6. Savings
  7. International trade
  8. International finance
  9. Investments
Macroeconomics, by definition, is very broad in its scope and study, but there are two areas where macroeconomists will research. These are the attempt to understand the causes and consequences of short-run fluctuations within a business cycle and the attempt to understand the determinants of the increases in national income.






Q.2 What is IMF? Where is it? The purpose of IMF?
IMF - INTERNATIONAL MONETARY FUND.
The International Monetary Fund (IMF) is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
An international organization created for the purpose of: 

1. Promoting global monetary and exchange stability.

2. Facilitating the expansion and balanced growth of international trade.

3. Assisting in the establishment of a multilateral system of payments for current transactions.


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