Index Definition of EconomicMicroeconomic ProblemsRational Economic Decision MakingMarginal CostMarginal BenefitMicroeconomic ObjectiveEfficiencyEquityMacroeconomic ProblemsRelationship with Growth and InflationUnemployment in Macroeconomic MentionIndividualsDefinition of EconomicIt is said that economics is art, but in modern society it is called social science. Considering the economic aspect, they will think about how costs and resources are efficient for the unlimited desires of human beings. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay There is microeconomics and macroeconomics. Microeconomics concerns the behavior of individuals and the decision-making process of businesses. For example, individuals, businesses, and families manage money how to spend it efficiently with respect to the organization and internal level. Microeconomic Issues Choices – All society has unlimited wants and if you want to choose something, you will face opportunity costs, because resources are limited in production (labour, land, machine etc.) Concept of opportunity cost – Refers to the alternative cost of the resource . For example, you spend time in the cafe after finishing work, you can't have dinner with your family at home, and you don't have time to watch TV anything else. Rational Economic Decision Making The individual always makes logical decisions that support people's satisfaction and their highest self-interest. It is considered marginal cost and marginal benefits. Marginal Cost When production produces an additional unit, the total cost of production is incurred for an additional unit of the good and service. Marginal Benefit Marginal benefit is an additional benefit caused by consuming an additional unit of a good and service. Also, what is the difference between marginal cost and marginal benefit? When companies plan to produce goods or services for the customer, they focus on how much they charge for incremental costs and expect how much benefit they get. Microeconomic objective There are efficiency and equity. Efficiency It is important for a company to have efficiency and effectiveness. Every company maintains standards, objectives and profitability. For example, companies expect the lowest prices in production or services, but for them to be of good quality. Equity Equity means that everyone comes from different fields. Therefore they have different backgrounds, ideas, culture and ethics, but they should have the same opportunities and equity in the place where they work. Macroeconomic IssuesMacroeconomics refers to the study of the "big picture" of the economy, so looking at concepts such as industry, country, or global economic factors. Macroeconomics includes the study of concepts such as a country's gross domestic product (GDP), unemployment rates, growth rate, cyclical fluctuations, and how all these concepts relate to each other. Relationship with growth and inflation Economic growth is explained by the theory of endogenous growth related to production issues for example; economies of scale, encouraging technological change and population growth. In endogenous growth theory, the growth rate depends on a variable: e.g. When faced with inflation, this will influence a decrease in the rate of return which will reduce the aggregation of capital and decrease the growth rate. The author's claim that there is a relationship between inflation and growth is not likely to be simple. The bivariate relationship may not be linear; and the correlation between inflation/disinflation and growth could be very different from the steady-state inflation-growth relationship. Ghosh.