In the modern economic system presented in the world today, microeconomics, and the study of it, is a vital part of the budding economic scholar. In most cases, microeconomics is based on the cumulative study of how individuals and businesses, or a combination of the two, make decisions regarding the allocation of resources, typically in markets where goods and services are bought and sold. This allocation, or optimization of limited funds through distribution, usually follows 2 standardized theories: the Consumer and the Producer. Consumers usually choose to maximize their preferences available in the market, with a limited income value or time aspect. This is evident in the world economy, with consumers becoming increasingly fiscally motivated and generally basing decisions on price and the time it takes to implement that decision. Manufacturers follow a different spectrum. In general, producers base their actions and decisions on profit maximization, with minimal capital use or loss. These two relationships arise from each other, since the producer's profit is generated by the consumer's interest in certain goods created by the producer. With both aspects in hand, the consumer and producer fall into many forms of markets. There are two main categories of markets: product markets and factor markets. Product markets are the most commonly seen markets, where individuals purchase products from companies or businesses. This is where consumer and producer theory comes into play. Factor markets are generally the opposite, as companies purchase services from individuals. These services may not follow the definition of “purchase,” but rather drive along the employer-employee relationship. A factor market is where companies or businesses look for… middle of paper… d relevance to society and the way things should be based on necessity and assistance to modern society as well as like the economic world. Using sport is a great way to describe both. With Lebron James, positive and normative analysis come into play. The positive analysis view would state that Lebron James makes $100 million a year because that is his market value, based on the amount of fans/viewers he has. The normative analysis view would state that his income is too high because he does not play a vital role in modern society, while a scientist, in and of himself, would have a greater need for that level of pay because he provides real facts and data scientific. explanation of certain topics, providing useful help to society. The scientist would play a greater role in the normative society, while Lebron would surpass the positive society.