Episode 4: Micro vs. Macro I have a question for you: If economics is simply an issue of examining how people choose to use THIS many resources to satisfy THIS many wants, why do we have both macroeconomics and microeconomics? Really it's a question of scope: microeconomics deals with choices of a single entity -- product, one price, one consumer, one household, one business... or even one industry. Macroeconomics, on the other hand, deals with the actions of the economy as a whole -- the country's income, which we'll call GDP, all prices (or "inflation"), the business sector (which is all businesses), or unemployment across the entire economy. NEXT TIME: Positive and Normative Analysis