Get to know economics, microeconomics, macroeconomics, in simple terms

The term economy is a term that we generally see or hear in this era. But I think not everyone understands what is meant by the term economy. In economic language, it turns out that it comes from Greek, namely οἶκος (oikos) which means family or household, and the word νόμος (nomos) which means rules or regulations or can also be interpreted as law. So based on the terms above, the economy can be interpreted as household rules or household management. So if you add the word science to economics, it means the study of the challenges of human activities related to the activities of production, distribution, and consumption of goods and or services, which this term can develop into the meaning of trade.

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In economic terms, we often hear about microeconomics and macroeconomics. In simple terms, the term microeconomics is the behavior of consumers and producers in trading activities that affect the determination of market prices, services, products, and the number of input factors that are traded in the market they do.

Examples of microeconomics are demand for goods and or services at the consumer level that they can afford at a certain time or in other words the purchasing power of society. This purchasing power or consumer demand affects the high and low price of goods or the cost of utilizing services in the market.

There are other examples in this microeconomics, for example, the supply made by producers to consumers where the higher the price of goods and services, the higher the supply or the number of service goods offered. The behavior of consumers and producers can also be included in the example of microeconomics where all the activities and processes that consumers or producers go through in the selection, search, purchase, evaluation, and use of goods and services to meet their needs, where this activity can affect the price of goods or service fee.

The next term is macroeconomics, which can simply be interpreted as a system that analyzes broader economic changes that can affect markets, companies, and communities in an area or country. This macroeconomy has several benefits or objectives, for example, to increase the income of a country, to analyze the needs of jobs which can later be used to make policies on employment.

Other macroeconomic benefits, for example, are to maintain the economic stability of a country with policies that are in accordance with the conditions of a country. Even the macroeconomy can also be the basis for controlling inflation in a country by looking at the economic data available in that country.

That is a simple understanding of the terms economics, microeconomics, and macroeconomics. thanks.