Economics seeks to understand the functioning of the marketplace and its relevance for firms.
Microeconomics examines consumers, firms and workers within markets, seeking to understand
- why prices change for particular products,
- what influences the costs of firms, and
- what will influence the firm's level of productivity.
Macroeconomics is the examination of the economy as a whole, and, therefore, considers issues such as
- the level of economic activity and growth,
- the level of prices and inflation,
- employment and unemployment, and
- international trade and FDI, Balance of Payment, and exchange rates.