Area is measured in square units and refers to the amount of surface space a flat object has. There are formulas to calculate the area of basic plane figures like squares, rectangles, triangles, circles, and composite figures that are made up of multiple shapes. To find the area of a composite figure, you break it into its component shapes, calculate the individual areas, and add them together. The document provides examples of using formulas to find the areas of various plane figures and composite shapes.