This document defines and compares microeconomics and macroeconomics. Microeconomics focuses on individual decision-making and factors like what, how, and for whom to produce. Macroeconomics focuses on large-scale economic factors like GDP, unemployment, and inflation. It also defines related economic terms like unemployment, GDP, inflation, demand, and investment.

1. MICROECONOMICS
VS
MACROECONOMICS

2. Definition: Microeconomics is
the part of economics concerned
with single factors and the effects
of individual decisions.

3.  Three goals of Microeconomics:
 What to produce?
 How to produce?
 For whom to produce?

4. Definition: Macroeconomics is
the part of economics concerned
with large-scale or general
economic factors, such as
interest rates and national
productivity.

5.  Three goals of Macroeconomics:
 High GDP.
 Unemployment.
 Inflation.

7. Definition: Unemployment is
defined as a situation where
someone of working age is not
able to get a job but would like to
be in full-time employment.

8.  GDP or Gross Domestic Product is the
market value of all final goods and services
produced in a country in a given time period.
 This definition has four parts :
1. Final goods and services.
2. Market value.
3. Produced within a country.
4. In a given time period.

9.  Definition: Inflation is an increase in
the price of a basket of goods and
services that is representative of the
economy as a whole.In the other
words,inflation is an upword
movement in the coverage level of
prices.

10. Example: With UK inflation
currently double the target at 4pc
and expected to rise further, we
look at what caused some of the
biggest inflation rises and falls in
history.

11. Definition: When all the
technology of a company is
constant then marginal product is
get extra output by adding and
extra labor.

12.  Imagine you are the owner of a toy company.
While you have always been able to fulfill the
orders of your customers, you suddenly
realize that you need to produce even more
as the demand for your toys has increased.
You are now forced to figure out how many
more toys you can produce if you hire one
more employee. In other words, you are
trying to calculate marginal product.

13.  Definition: Firstly know what is demand :demand is
the quantity of good or service that consumer and
business willing and able to buy at given price in a
given time period. In macroeconomics, aggregate
demand (AD) or domestic final demand (DFD) is
the total demand for final goods and services in an
economy at a given time. It specifies the amounts
of goods and services that will be purchased at all
possible price levels. This is the demand for the
gross domestic product of a country.

15.  Definition: Demand is the quantity of a
good or service that consumers and
businesses are willing and able to buy at
a given price in a given time
period. Market demand is the sum of the
individual demand for a product from
buyers in the market.

17.  Definition: An investment is an asset or
item that is purchased with the hope that
it will generate income or will appreciate
in the future. In an economic sense,
an investment is the purchase of goods
that are not consumed today but are used
in the future to create wealth.