Microeconomics

Note: I will separate each posts into an easy part and a hard part, indicated by a line. 

The easy definition: Economics is divided into to sections: Microeconomics and Macroeconomics. Microeconomics is when economists look at things from the level of one "entity". This is a tricky concept to grab for some people. For example, Looking at a company (one company), an individual (one person), even an industry (one industry) can be considered as microeconomics. A rule of thumb is that if you can call it "one thing", it can be considered microeconomics.

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 The nerd definition: Microeconomics looks at the individual firms' and consumers' and how they behave and how they make their decisions. In other words, microeconomics study how supply, demand and market affect each other and the individual that an economists is studying. Take a fishing firm for example. The economists (and soon-to-be) look at its output and pricing decisions and consumer's purchasing decisions, and see how increasing production costs forces forces the firm to raises the price on their products, which affects how much consumers who will still buy fishes from this firm or buy it somewhere cheaper.

A prime example of a Macroeconomicst's favorite subject.