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There is no way
that economics can be used to show that one of these normative judgements is
correct and the other is wrong. It all depends on the preferences or priorities
of the individual or the society that has to make this choice. But that does
not mean that economics can throw no light on normative issues. Macroeconomics.
The overall picture Macroeconomics is the study of the economy as a whole.
Macroeconomics is concerned not with the details - the price of cigarettes
relative to the price of bread, or the output of cars relative to the output of
steel - but with the overall picture. We shall study issues such as the
determination of total output of the economy, the aggregate level of
unemployment, and the rate of inflation or growth of prices of goods and
services as a whole. The distinction between microeconomics and macroeconomics
is more than difference between economics in the small and economics in the
large, which the Greek prefixes micro- and macro- suggest. The purpose of the
analysis is also different. A model is a deliberate simplification to enable us
to pick out the key elements of a problem and think about them clearly.
Although we could study the whole economy by piecing together our microeconomic
analysis of each and every market, the resulting model would be so cumbersome
that it would be hard to keep track of all the economic forces at work.
Microeconomics and macroeconomics take different approaches to keep the
analysis manageable. Microeconomics places the emphasis on a detailed
understanding of particular markets. To achieve this amount of detail or
magnification, many of the interactions with other markets are suppressed. In
saying that a tax on cars reduces the equilibrium quantity of cars we ignore
the question of what the government does with the tax revenue. If the
government has to borrow less money, it is possible that interest rates and
exchange rate will fall and that improved international competitiveness of UK
car producers will actually increase the equilibrium output of cars in the UK.

Microeconomics
is a bit like looking at a horse race through a pair of binoculars. It is great
for details, but sometimes we get a clearer picture of the whole race by using
the naked eye. Because macroeconomics is concerned primarily with the
interaction of different parts of the economy, it relies on a different
simplification to keep the analysis manageable. Macroeconomics simplifies the
building blocks in order to focus on how they fit together and influence one
another.

Контрольная работа №1 Вариант №5
I. Заполните пропуски соответствующей формой глагола “to be” в Present, Past или Future Simple.
1. She … divorced. She lives with her son. Her son’s name … Bob.
2. How old ... you?
3. I … always at work on time.
4. They … in St. Petersburg last week.
5. We … students in two years.
6. I went to bed early because I … tired yesterday.