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It deals with the production, distribution, and consumption of goods and services. It also includes the concept of demand and supply of goods and services. It involves how businesses, nations, and governments make certain choices to satisfy their country’s needs.
It is important because it helps humans to make their life decisions in the face of scarcity. It can be an individual decision, family decision, societal decisions, and business decisions. It is how society uses scarce resources to produce valuable goods and distribute them among different people.
It mainly deals with the behavior of the units or individuals. It primarily aims at determining the individual price of goods and services. That's why it is also known as price theory. Some of the main concepts dealing with microeconomics are production cost, firms, supply and demand, etc.
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It mainly deals with the aggregates that take place within the economic system. It is also known as income theory. The main aim of macroeconomics is to determine the employment level as income of the economy. It involves factors such as inflation, interest rate, growth, and taxes, etc.
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