Microeconomics and macroeconomics are two different perspectives on the economy. Economics seeks to solve the problem of scarcity, which is when human wants for goods and services exceed the available supply.

Division and specialization of labor only work when individuals can purchase what they do not produce in markets. A modern economy displays a division of labor, in which people earn income by specializing in what they produce and then use that income to purchase the products they need or want.

economics — the study of how humans make choices under conditions of scarcity. specialization — when workers or firms focus on particular tasks for which they are well-suited within the overall production process. microeconomics — the branch of economics that focuses on actions of particular agents within the economy, like households, workers, and business firms. macroeconomics — the branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance.