Although many people do not see much difference in micro and macroeconomics, there is in fact a huge difference. Microeconomics is the study from a specific firm’s point of view, as macroeconomics is the study from the full economies point of view. So, what does this all mean? In this paper we will discuss the many factors that make up key elements of macroeconomics. What is economics all about? Is it the study of money? Is it about trade-offs and scarce resources? Is it about inflation, unemployment, and government budget deficits? Is it about eliminating poverty? All of the above are important topics in the study of economics. The main objective of economic research is its ability to explain how we can most optimally achieve the highest standard of living. Thus: Economics is the study of how we can best increase a nation's wealth with the resources that we have available to us.
In our country and other relatively free-market economies, the decision as to what and how much to produce is made primarily by the buyers and sellers of the products. The government exerts relatively little control over prices of products. Some say that this is the nation’s wealth, but is it? Wealth by definition includes tangible products, such as cars and houses, as well as intangible products, such as more leisure time and cleaner air.
The biggest question associated with wealth, is how to increase it. Some economists support government involvement, price controls, and government rules and regulations. Others believe that government involvement should be minimal and limited to tasks including the provision of a legal system, military, police and fire protection, and providing certain public goods. Many believe that a combination of moderate government involvement and private initiative works best. There is a lot of controversy about the role of profits, consumer spending, savings,