Microeconomics is generally the study of individuals and business decisions, macroeconomics looks at higher up country and government decisions.

Macroeconomics and microeconomics, and their wide array of underlying concepts, have been the subject of a great deal of writings. The field of study is vast; here is a brief summary of what each covers: Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy. For example, microeconomics would look at how a specific company could maximize it's production and capacity so it could lower prices and better compete in its industry. (Find out more about microeconomics in Understanding Microeconomics.) Macroeconomics, on the other hand, is the field of economics that studies the behavior of the economy as a whole and not just on specific companies, but entire industries and economies. This looks at economy-wide phenomena, such as Gross National Product (GDP) and how it is affected by changes in unemployment, national income, rate of growth, and price levels. For example, macroeconomics would look at how an increase/decrease in net exports would affect a nation's capital account or how GDP would be affected by unemployment rate. (To keep reading on this subject, see Macroeconomic Analysis.) While these two studies of economics appear to be different, they are actually interdependent and complement one another since there are many overlapping issues between the two fields. For example, increased inflation (macro effect) would cause the price of raw materials to increase for companies and in turn affect the end product's price charged to the public. The bottom line is that microeconomics takes a bottoms-up approach to analyzing the economy while macroeconomics takes a top-down approach. Regardless, both micro- and macroeconomics provide fundamental tools for any finance professional and should be studied together in order to fully understand how companies operate and earnrevenues and thus, how an entire economy is managed and sustained.

IMPORTANCE OF STUDYING ECONOMICS

Economics is basically called the "QUEEN SUBJECT " of all subjects of social sciences . Economics is one of the most useful of all sciences, because it make us aware of how thing are exchanged, flourish, and survive within multiple markets. Not even that , it makes us aware of lots of facts which we know earlier but have not figured out that how it implemented on ones life. Economics is about choice and is at the heart of all decision making individuals, businesses and governments are all faced with making choices in situations with resources and scarce. Economics is valuable not only for the topics it studies, but also for its methods of analysis. Economics provides you with the knowledge and insight necessary to understand the impact of developments in business, society and the world economy. It enables you to understand the decisions of households, firms and governments based on human behaviour, beliefs, structure, constraints and need. The study of economics does help you to understand various aspects of finance but Economics is also about choice, scarcity, opportunity, and the impact of decision making on aspects of society. It is important to study economic because that way you learn how to use your money when buying new stuff like cars, house, clothes, goods, etc. When you get more information you also learn how money affect people in some way. For a lot of people money is everything and stands above love, family, and friends, they haven't realized that money is also killing us by becoming selfish and tearing family apart because of them working more hours than they should just to earn more money.

DIFFERENT ECONOMISTS
HENRY CHARLES CAREY- Carey's first large work on political economy was preceded and followed by many
smaller volumes on wages, the credit system, interest, slavery, copyright, etc.; and in 1858-1859 he gathered the fruits of his lifelong labours into The Principles of Social Science, in three volumes. Principles is a comprehensive and mature exposition of his views. In it, Carey sought to show that there exists, independently of human wills, a natural system of economic laws, which is essentially beneficent and spontaneously increases prosperity of the whole community, and especially of the working classes, except when it is impeded by the ignorance or perversity of humankind. He rejected the Malthusian doctrine of population, maintaining that the only situation in which the means of subsistence will determine population growth is one in which a given society is not introducing new technologies or not adopting forward-thinking governmental policy. Population regulated itself in every well-governed society, but its pressure on subsistence characterized the lower stages of civilization. Carey denied as the universal truth, for all stages of cultivation, of the law of diminishing returns from land.

RICHARD CANTILLON- Although there is evidence that Richard Cantillon wrote a wide variety of
manuscripts, only his Essai Sur La Nature Du Commerce En Gnral (abbreviated Essai) survives. Written in 1730,it was published in French in 1755, and was translated into English by Henry Higgs in 1932.Although there is evidence which suggests that Essai had tremendous influence on the early development of economic science, Cantillon's treatise was largely neglected during the 19th century. In the late 19th century, it was "rediscovered" by William Stanley Jevons, who considered it the "cradle of political economy". Since then, Cantillon's Essai has received growing attention, thanks in large part to Henry Higgs, Joseph Schumpeter, Friedrich Hayek and Murray Rothbard, all of whom have written on the subject. Essai is considered the first complete treatise on economic theory and Cantillon has been called the "father of enterprise economics"One of the greatest influences on Cantillon's writing was English economist William Petty and his 1662 tract Treatise on Taxes. Although Petty provided much of the groundwork for Cantillon's Essai,Anthony Brewer argues that Petty's influence has been overstated.Apart from Petty, other possible influences on Cantillon include John Locke, Cicero, Livy, Pliny the Elder, Pliny the Younger, Charles Davenant, Edmond Halley, Isaac Newton, Sbastien Le Prestre de Vauban, and Jean Boisard. Cantillon's involvement in John Law's speculative bubble proved invaluable and likely heavily influenced his insight on the relationship between increases in the supply of money, price, and production.

ARTHUR LEWIS- Lewis published in 1954 what was to be his most influential development economics
article, "Economic Development with Unlimited Supplies of Labour" (Manchester School). In this publication, he introduced what came to be called the Dual Sector model, or the "Lewis Model." Lewis combined an analysis of the historical experience of developed countries with the central ideas of the classical economists to produce a broad picture of the development process. In his theory, a "capitalist" sector develops by taking labour from a non-capitalist backward "subsistence" sector. At an early stage of development, the "unlimited" supply of labour from the subsistence economy means that the capitalist sector can expand for some time without the need to raise wages. This results in higher returns to capital, which are reinvested in capital accumulation. In turn, the increase in the capital stock leads the "capitalists" to expand employment by drawing further labor from the subsistence sector. Given the assumptions of the model (for example, that the profits are reinvested and that capital accumulation does not substitute for skilled labor in production), the process becomes self-sustaining and leads to modernization and economic development.

The point at which the excess labor in the subsistence sector is fully absorbed into the modern sector, and where further capital accumulation begins to increase wages, is sometimes called the "Lewisian turning point" (or "Lewis turning point"). It has recently been widely discussed in the context of economic development in China Lewis published The Theory of Economic Growth in 1955 in which he sought to provide an appropriate framework for studying economic development, driven by a combination of curiosity and of practical need.

SOME FILIPINO ECONOMISTS

Cielito Habito Cielito Flores Habito (born April 20, 1953) or "Ciel" Habito is a Filipino economist, professor, and columnist. He served concurrently as the Director-General of the National Economic and Development Authority and Socio-Economic Planning Secretary during the Ramos administration. He is one of the 1991 Ten Outstanding Young Men Awardees for Economics Habito currently teaches Economics at the Ateneo de Manila University. He is also director of the Ateneo Center for Economic Research and Development, a research unit in economics and economic policy at the same university. He writes a weekly column entitled No Free Lunch in the Philippine Daily Inquirer's opinion section. From August 2003 to June 2010, he wrote for the same newspaper's business section. He was also a columnist in The Manila Times from May 2002 to July 2003. Solita Collas-Monsod Solita Collas-Monsod, an economics professor in the School of Economics of the University of the Philippines (UPSE). During the time of President Corazon Aquino, she was appointed as Director General of the National Economic and Development Authority and as Socio-economic Planning Secretary. AWARDS Monsod is a recipient of numerous awards for broadcasting and government service. Broadcaster of the Year, 2000. Award presented by KBP. Best TV Program Host, Public Affairs Program. Award presented by Star Awards. Best Public Affairs Program, 2000. Award presented by Catholic Mass Media Awards. Best TV Program Host, Public Affairs Program, 1999. Award presented by Star Awards. Woman of Distinction, 1995. Award presented by Soroptimist International Makati. Woman of the Year, 1988. Award presented by Perspectives, publication of the Catholic Educators Association of the Philippines. Cabinet Secretary of the Year, 1988 and 1999. Award presented by the Philippine Free Press. Professional Award in Economics, 1987. Award presented by the University of the Philippines Alumni Association. Mariang Maya Award. Presented by the Sigma Delta Phi Alumnae Association, University of the Philippines. Felipe Medalla Felipe Medalla, also a professor of UPSE. He did extensive research in such subjects as exchange rate policies, economic crisis and economic growth. Like Solita Monsod, he became Director General of NEDA and Socio-economic Planning Secretary during the time of President Joseph Estrada. Dr. Dante B. Canlas Dr. Dante B. Canlas, a professor of UPSE, whose expertise is in the areas of macroeconomic planning, social development policy formulation, public investment programming and project monitoring. He became Director General of the National Economic and Development Authority and Socio-economic Planning Secretary when President Gloria Macapagal-Arroyo, his student, asked him to take the posts. Gerardo P. Sicat Gerardo P. Sicat, a Professor Emeritus of UPSE who has written economic books and textbooks. His books delve on such subjects as political economic reform, electricity reform, and labor market and issues. Ernesto M. Pernia Ernesto M. Pernia, a professor of UPSE and author of many economic books and publications dealing with regional development. He was once a lead economist of the Asian Development Bank.

Raphael Lotilla Raphael Lotilla, former Deputy Director General of the National Economic and Development Authority. After his stint in NEDA, he was appointed Secretary of the Department of Energy. Ralph Recto Ralph Recto, the current Director General of the National Economic and Development Authority Diosdado Macapagal Diosdado Macapagal His family was poor (hence his nickname "poor boy from Lubao"), but with the help of Honorio Ventura, the Secretary of Interior at that time, he studied law and graduated in the University of Santo Tomas and pursued and earned the postgraduate degree of Doctor of Civil Law and Ph.D. in Economics in the same university. During the Japanese occupation of World War II, Macapagal served as support to the anti-Japanese task force and as an intelligence liaison to the US guerillas. It was during this period that his first wife died. He later married Evangelina Macaraeg, the mother of current Philippine President Gloria Macapagal Arroyo. Gloria Arroyo Gloria Macapagal-Arroyo Arroyo, a practicing economist, has made the economy the focus of her presidency. Early in her presidency, Arroyo implemented a controversial policy of holiday economics, adjusting holidays to form longer weekends with the purpose of boosting domestic tourism and allowing Filipinos more time with their families. Economic growth in terms of gross domestic product has averaged 4.6% during the Arroyo presidency from 2001 up to the end of 2005. This is higher than previous recent presidents when compared to the 3.8% average of Aquino, the 3.7% average of Ramos, and the 2.8% average of Joseph Estrada. Inflation during the Arroyo presidency has been the lowest since 1986, averaging 2.5%.