Essay Topics - Microeconomics and Macroeconomics

Essay Topics - Microeconomics and MacroeconomicsWhen choosing the appropriate essay topics for your honors thesis, it is important to understand the difference between microeconomics and macroeconomics. These two broad areas of study are interrelated. Both microeconomics and macroeconomics use unique perspectives to explain behavior in different spheres of human endeavor.Microeconomics addresses the micro level of behavior and study of the market. Macroeconomics examines the macro level of behavior and study of the entire economic structure of a nation. In both types of study, one type focuses on microeconomic phenomena, while the other focuses on macroeconomic phenomena.The broad focus of microeconomics is on the behavior of individuals and business firms. In this type of study, there is usually no attempt to model economies in general. Instead, the microeconomic behavior of individuals and firms is studied from the point of view of the individual. Individuals are studied as if they were individuals doing their own transactions with their own money.For example, it might be that a small business person earns the majority of his income from one customer and pays the remainder to another customer. It may be assumed that the small business person in question would hold his money in a bank account. With these assumptions, it would be possible to make an easy but very simplistic and simple statement such as: 'Individual A pays Individual B and Individual C pay Individual D.'Because microeconomics is more direct and limited in its scope, its conclusions are typically less comprehensive than those of macroeconomics. Thus, the results of microeconomics are much more simple and direct than those of macroeconomics.With the lack of the ability to analyze economic systems as if they were highly complex mathematical systems, macroeconomics is forced to study economic systems at a broader level. The results of this study are more involved and ultimately more complicated than those of microeconomics.With microeconomics, we have essentially a simpler method of examining behavior. It can also be viewed as a simplified version of the macroeconomic theory. In most cases, however, the microeconomics essay topics are too simple for students to effectively analyze the complexities of an economy.