Economics

Economics is the social science that studies how individuals, businesses, governments, and societies make choices about allocating scarce resources to satisfy their needs and desires. It examines the production, distribution, and consumption of goods and services, along with the behaviors and interactions that influence these processes. Economics is generally divided into two main branches: microeconomics, which focuses on individual agents and markets, and macroeconomics, which looks at the economy as a whole, including issues like inflation, unemployment, and economic growth. The insights derived from economic analysis can inform policy decisions, enhance understanding of market dynamics, and improve resource management. Economics also encompasses various concepts such as supply and demand, opportunity cost, and market equilibrium, all of which help explain how choices are made in the context of limited resources. Overall, economics aims to understand the underlying principles that govern the production and distribution of wealth and how these principles affect societal welfare.