“Microeconomics and macroeconomics are closely intertwined. Because changes in the overall economy arise from the decisions of millions of individuals, it is impossible to understand macroeconomic developments without considering the associated microeconomic decisions.”

— N. Gregory Mankiw

Source: Principles of Economics (1998-), Ch. 2. Thinking Like an Economist; p. 27

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N. Gregory Mankiw 16

American economist 1958

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“Software Engineering Economics is an invaluable guide to determining software costs, applying the fundamental concepts of microeconomics to software engineering, and utilizing economic analysis in software engineering decision making.”

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“The dictionary defines "economics" as "a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services." Here is another definition of economics which I think is more helpful in explaining how economics relates to software engineering.
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This definition of economics fits the major branches of classical economics very well.
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