Economics is a social science which deals with the study of distribution, production, and consumptions of products and services and with the management and theory of economies and economic system. This science deals with the study of consumption and production of wealth and the related issues of labor, finance and taxation, etc. This study governs the system or the process by which the products and services are produced, bought and sold. With the help of economics theories, models and principles, one can study the way market works. This study explains the way the wealth is generated and distributed and how the people are allocated to resources which are scarce and have several uses alternatively.
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Microeconomics is the branch of economics which deals with the study of behavior of individual and the firms which make decisions concerning the allocation of available limited resources. This branch of economics focuses on analyzing the market behavior of individual customers and the firms in an attempt to understand the process of decision making of the households and the firms. It focuses on how individual buyers and sellers interact with each other and the elements which can influence the behavior and buying decisions of buyers and sellers.
Macroeconomics is defined as the branch of economics, which studies the behavior of a complete, aggregate economy. This study examines the economy – wide processes, including the unemployment changes, growth rate, inflation, growth domestic product, price levels, national income etc. This economics studies the performance, behavior, decision making and structure of an economy as a whole.