The economics of welfare Whereas macroeconomics is concerned with economy-wide aggregates such as national income, the price level, inflation, and economic growth, microeconomics is concerned with issues on a smaller scale, such as involve individual markets, firms, and the organization of production, resources, and technology. Microeconomics also includes the study of consumer behaviour and economic welfare. Here an important distinction needs to be drawn between what are commonly referred to as positive economics and normative economics.1