Macroeconomics and Microeconomics
Let’s remind:
1) What is economics?
2) What is the economy?
3) What is the difference between economics and economy?
4) What are the branches of economics?
Reading
Task 1. Before reading the text, make a list of terms or phrases related to economics that you are already
familiar with. Then, as you read the text, identify and define any new terms or phrases that you come
across.
Task 2. Answer the following questions relying only on your background knowledge:
1) What does macroeconomics study?
2) What does microeconomics study?
3) What are the differences between them?
Task 3. Scan the text and check your predictions.
Economics is divided into two categories: microeconomics and macroeconomics.
Microeconomics is the study of individuals and business decisions, while macroeconomics looks at the
decisions of countries and governments. Though these two branches of economics appear different, they
are actually interdependent and complement one another. Many overlapping issues exist between the two
fields.
Microeconomics is the study of decisions made by people and businesses regarding the allocation
of resources, and prices at which they trade goods and services. It considers taxes, regulations, and
government legislation. Microeconomics focuses on supply and demand and other forces that determine
price levels in the economy. It takes a bottom-up approach to analyzing the economy. In other words,
microeconomics tries to understand human choices, decisions, and the allocation of resources.
Macroeconomics is a branch of economics that focuses on the study of the economy as a whole,
rather than individual markets or firms. It deals with the broader aspects of economic activity, such as the
overall level of economic output, national income, unemployment, inflation, and the interactions among
various economic agents like households, businesses, and governments. Macroeconomists aim to
understand, analyze, and predict the behavior of the economy on a national or international scale.
Macroeconomics, on the other hand, studies the behavior of a country and how its policies impact the
economy as a whole. It analyzes entire industries and economies, rather than individuals or specific
companies, which is why it’s a top-down approach. It tries to answer questions such as “What should the
rate of inflation be?” or “What stimulates economic growth?”.
Task 4. Critical Thinking Questions:
1) What are some specific examples of decisions that fall under the domain of microeconomics?
2) Give examples of economic indicators that macroeconomists might analyze to understand the
health of an economy.
3) How do microeconomics and macroeconomics complement each other, as mentioned in the text?
Task 5. Compare and contrast: create a Venn diagram or a table to compare and contrast microeconomics
and macroeconomics based on the information in the text. Highlight their similarities and differences.
Task 6. Preview the video title and description. Begin by looking at the title and description of the video.
What do you expect to learn from this video about macroeconomics and microeconomics? Take a
moment to jot down your expectations or questions.
Task 7. Questions to anticipate: formulate a set of questions you hope the video will answer. These could
be questions about the fundamentals of macroeconomics and microeconomics or more specific queries
related to economic concepts.
https://www.youtube.com/watch?v=nJbWj_kHCJQ
Task 8. Watch the video.
Task 9. Reflection questions:
1. What did you find most interesting or surprising in the video?
2. Did the video clarify any misconceptions you had about macroeconomics or microeconomics?
3. Were there any examples or real-world applications mentioned in the video that stood out to you?
Task 10. Connections to prior knowledge: reflect on your prior knowledge of economics and consider
how the information presented in the video aligns with or differs from what you knew before. Note any
new perspectives or ideas you gained.
Speaking
Task 11. Application to real life: choose a current event or economic issue (e.g., a change in taxation,
inflation rates, or government policies) and in groups discuss how both microeconomics and
macroeconomics might play a role in understanding and addressing the issue.
Task 12. Definitions and differences: partner up with a classmate or friend. Take turns explaining the
definitions of microeconomics and macroeconomics in your own words. Then, discuss the key differences
between the two branches. Try to use examples to illustrate your points.
Writing
Task 13. Future trends: predict and discuss how advancements in technology or global trends may impact
both microeconomics and macroeconomics in the future. Consider how changes in the digital economy,
automation, or globalization will affect economic decision-making at both individual and national levels.
Write an essay (150-180 words).
FOCUS ON GRAMMAR: MODAL VERBS OF DEDUCTION
For more information, turn to GRAMMAR REFERENCES.
For more exercises, scan the QR codes below.
Task. Fill in each gap using must, can’t, could, may or might.
I'm sure the ambassador doesn't speak Kazakh very well. He's only lived in Almaty for a few weeks.
He_______ speak Kazakh very well. He's only lived in Almaty for a few weeks.
He has got an invitation from the Akim of the city. There's a chance he’ll become his assistant!
He________ become his assistant!
The documents are not on her desk so she is sure it's in the drawer.
The documents are not on her desk so it ______ be in the drawer.
Someone told me that the Akim was in Rome but I saw him yesterday so I'm sure he's not abroad.
The Akim_______be abroad.
He told me to prepare the project by tomorrow but it's almost impossible to have it done so fast. I
_______ finish it by tomorrow if I stay at work all night, but I'm not sure.
