Economics is a social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices about how to allocate resources. It is divided into two categories- Microeconomics and Macroeconomics. Microeconomics is the field of economics that looks at the economic behaviors of individuals, households, and companies. Macroeconomics takes a wider view and looks at the economies on a much larger scale—regional, national, continental, or even global. Since microeconomics focuses on the behavior of small units of the economy, it tends to limit itself to specific and specialized areas of study. Microeconomics does not try to answer or explain what forces should take place in a market. Rather, it tries to explain what happens when there are changes in certain conditions. However, macroeconomics has a much broader reach than microeconomics. Though these two branches of economics appear different, they are actually interdependent and complement one another. Many overlapping issues exist between the two fields.

Yogita Parihar

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