The field of economics is typically divided into two broad sections, microeconomics and macroeconomics. Each is meant to represent a different scope for viewing economic problems and understanding the functioning of economies.

Economics

Economics is the study of how goods and services are produced, distributed and consumed in a society.

Microeconomics

Microeconomics seeks to understand how individuals and companies make decisions about how to allocate scarce resources.

Examples of Microeconomic Issues

Microeconomics focuses on problems relating to supply and demand, elasticity, consumer preferences, markets and monopolies.

Macroeconomics

Macroeconomics focuses on economics on a large scale, often from the point of view of government policy.

Examples of Macroeconomic Issues

Issues studied in macroeconomics include national output, unemployment, interest rates and inflation.