Following are the points of distinction between microeconomics and macroeconomics:

Production Possibility Frontier (PPF) is the graph depicting all the possible combinations of two goods (services) that can be produced in an economy by making an efficient and full utilisation of all the resources and given state of technology. It is also known as the Production Possibility Curve (PPC). PPF can be shown with the help of the given figure.

The figure illustrates the production possibilities of the economy. Any point on the curve represents a combination of corn and cotton that can be produced with full utilisation of the economy's resources. The curve represents the maximum amount of corn that can be produced in the economy for any given amount of cotton and vice-versa.

An increase in import duty would cause the demand curve to shift backward. As a result, the equilibrium prices and quantity of mobile phones would fall.

A Production Frontier(PPF) represents opportunities available to an economy with the given amount of resources.
(i) A point lying on the PPF represents that all the resources have been fully and efficiently utilised. More of one good can be produced only after sacrificing some quantity of the other good.
(ii) A point lying below the PPF represents under utilisation of resources. The production can be increased by employing all the resources.
(iii) A point lying outside the PPF represents the combination of two goods that cannot be attained with given amount of resources and technology.

Problems related to allocation of resources in an  economy arise due to the following two basic features of resources;
(i) Resources are Limited:  The resources used to produce goods and services that satisfy human wants are limited. Limited resources are incapable of satisfying unlimited human wants.
(ii)  Limited Resource have Alternative Uses: The resources used for producing goods and services are not only limited but they also have many competing usages. As a result, an individual has to face the problem of making a choice among the available alternatives.

The characteristics of a capitalist of free-market economy are as follows:
(i) Profit is the main motive of carrying out various economic activities.
(ii) Factors of production are privately owned.
(iii) Consumers are free to choose whatever they can afford.
(iv) Prices of goods and services are determined by market forces of demand and supply with minimum intervention by the government. 

Economising of resources means using the productive resources in the most economical and efficient way. The economical use of resources is required in an economic system because the resources are scare while the wants are infinite. In such circumstances, any wastage of resources has to be avoided.