An economy refers to inter-related production and consumption activities in a large set which answers the question of allocation of scarce resources. Economic activities i.e. production and consumption occur to fulfill the day-to-day and long-term needs of any society. There are two basic types of the economy on the basis of scale. One is macroeconomy and another one is micro-economy. Macroeconomy deals with the economic activities in a large society or country-level whereas micro economy tells about the business activities of individuals and groups within a country or territory. The common and crucial components of macroeconomic study are inflation, interest rate, gross domestic product (GDP), national income, the balance of payment, unemployment, etc. The capital market in fact is the heart of any macroeconomy which fuels economic growth, supports capital formation & development as a whole. Under a macroeconomy there exist long-term and short-term business cycles on which intelligent investors make their prudent investment decisions. On the other hand, the major components of microeconomic study are incentives & behaviors, utility theory, production theory, price theory, etc. Microeconomics is a very useful tool to make business decisions especially in the area of manufacturing and trading.