According Alferd W. Stoner and Douglas C. Hague economics can be divided into three sections as follows:
A. Descriptiv Economics (Descriptive Economics)
Economics is to collect all the important facts about the subject (topic) which are listed, such as agricultural system in Bali, or the cotton industry in India.
B. Economic Theory (Theory or Theory of Economic sciences Economics)
Economics provides a simplified explanation of how an economic system works and is an important characteristic of the system. Economics of science theory is divided into micro and macro economics.
C. Applied Economics (Applied Economics)
Economics is trying to use the basic framework of the general and economic analysis provided by the theory to explain the causes and significance of events reported by the economists descriptive.
Micro and Macro Economics
Economics is divided into two broad subfields, namely micro-economics (microeconomics) and macroeconomics (macro economics). Micro-economics is the study of how households and firms make decisions and how they interact in specific markets. Microeconomics to discuss for example how a household allocates its income to buy goods and services in order to meet the needs. Economics experts discuss the effect of micro usually caused by a policy of the company or individual households. For example, the effects of the policy of compulsory education on labor income.
Macro economics is the study of the phenomenon or the phenomenon of the economy at large. Macroeconomics to discuss the overall economy. Discusses the macroeconomic production as a whole, is no longer a company such as micro-economics. In discussing the overall economy, focusing on macroeconomics and economic policy variables that influence it. For example, discusses the macroeconomic level of national unemployment, national income levels, and the national inflation rate.
Differences in Macroeconomic Microeconomics
Of understanding and examples given above we can conclude the difference between micro economics macro economics.
The differences are as follows.
A. Microeconomic discuss how households and firms make decisions, while talking about not only the macro-economic households and firms, but the economy as a whole.
B. Microeconomics is a part of various macroeconomic variables like consumption, savings, and income. This means that if the microeconomic discuss a particular company earnings, macroeconomic even discuss the company's national income in the economy.
C. Microeconomics deals with the flow of goods and services from companies or manufacturers to households or consumers, the flow of factors of production from households to firms and pricing of goods and services, both as a production factor as well as consumer goods.
If further review, the real focus of microeconomics is the corporate sector, namely how the company makes a profit in producing goods and services. Profit is one of the objectives of the company. Business makes a profit in the company's need to know in advance what items will be produced, in what amounts and sold at what price.
