Identify a current event and explain why it is an example of microeconomics.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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One current event that has to do with microeconomics is the trouble that American Airlines is in.  The airline is going through bankruptcy and is having major problems in its relations with its employees.  The airline wants its employees to take major cuts in their compensation and the employee unions are very reluctant to do so.  At the same time, American is in the middle of a takeover attempt by US Air that the airline resists but employees support.

All of this has to do with microeconomics because it focuses on the troubles of one specific company.  Microeconomics looks at specific firms, individuals, or sectors, not at the performance of the overall economy.

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