In the modern economic system presented in today's world, microeconomics, and its study, is a vital part of the budding economic researcher. In most cases, microeconomics is based on the cumulative study of how individuals and firms, 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 funds limited by distribution, generally follows 2 standardized theories: the Consumer and the Producer. Consumers generally choose to maximize their preferences available in the market, with limited income value or time aspect. This is evident in the global economy, where consumers are still driven by financial considerations and generally base their decisions on price and the time it may take them to make that decision. Producers follow a different spectrum. Typically, producers base their actions and decisions on maximizing profit, with little use or loss of capital. These two relationships arise from each other, since the producers' profit is generated by the consumer's interest in certain goods created by the producer. With both aspects in hand, the consumer and producer find themselves in many forms of markets. There are two main categories of markets: product markets and factor markets. Product markets are the most common markets, where individuals purchase products from businesses or businesses. This is where the consumer-producer theory comes into play. Factor markets are generally the opposite: businesses buy services from individuals. These services may not follow the definition of “buy,” but rather guide the relationship between employer and employee. A factor market is where businesses or businesses look for...... middle of paper ...... and relevance to society, and how things should be based on necessity and assistance to modern society, as well as the economic world. Using sports is a great way to describe both. With Lebron James, positive and normative analysis comes into play. The positive analysis point of view would state that Lebron James makes $100 million per year because that is his market value, based on the number of fans/ viewers it has. The normative analysis point of view would argue that his income is too high, because he does not play a vital role in modern society, whereas a scientist, per se, would need this level of remuneration more because that it provides real and scientific facts. explanation of certain subjects, providing useful assistance to society. The scientist would play a more important role in the normative society, while Lebron would overtake the positive society..