Microeconomía vs. Macroeconomía

Microeconomía vs. Macroeconomía

• Microeconomía: Studies individual economic units (consumers, firms, industries) and their interactions within specific markets. Aims to understand how prices are determined and how resources are allocated. Examples: analyzing a rise in energy prices due to increased demand.
• Macroeconomía: Examines the overall functioning of an economy. It focuses on aggregate indicators like inflation, unemployment, economic growth, and international trade.

Goods and Services

• Good: Anything that satisfies human needs, either directly or indirectly.
• Classification of Goods:
  • Free Goods: Abundant, found freely in nature, and not economically significant. E.g., air (normally).
  • Economic Goods: Have utility (usefulness) and scarcity, meaning they are limited. Classified as:
    • Tangible (material): Physical objects, e.g., food, clothing, houses.
    • Intangible (immaterial): Non-physical services, e.g., healthcare, education, entertainment.
• Classification by Relationship:
  • Normal Goods: Demand increases as income rises.
  • Inferior Goods: Demand decreases as income rises.
  • Complementary Goods: Consumption of one increases the demand for the other (e.g., coffee and sugar).
  • Substitute Goods: Consumption of one decreases the demand for the other (e.g., tea and coffee).
  • Independent Goods: No relationship between their consumption patterns.

Classification of Goods (cont.)

• Classification by Nature:
  • Free Goods: Abundantly available in nature, not subject to economic considerations.
  • Economic Goods: Scarce and have utility, meaning they are in demand and need to be produced or exchanged.

Classification of Needs

• Individual Needs: Basic needs of an individual, like food, shelter, safety.
• Collective Needs: Needs shared by a group of people, e.g., public services such as education and security.
• Primary Needs: Needs that are essential to survival (e.g., food, water).
• Secondary Needs: Needs that improve quality of life (e.g., education, entertainment).
• Present Needs: Needs that must be immediately satisfied.
• Future Needs: Needs to be met at a later time (e.g., retirement planning).

Classifications of goods

• Final Goods: Goods that are ready for consumption or use, e.g., a finished product.
• Intermediate Goods: Goods used in the production of other goods, e.g., raw materials.
• Capital Goods: Goods used in producing other goods or services, e.g., equipment, machinery.
• Durable Goods: Goods that are used for a long period, e.g., cars, houses.
• Non-Durable Goods: Goods that are consumed quickly, e.g., food, drinks.