Economics

Economics is the social science that studies the production, distribution, and consumption of goods and services. It analyzes how individuals, businesses, governments, and societies make choices about allocating scarce resources to satisfy their needs and wants. Economics is broadly divided into two main branches: microeconomics, which focuses on the behavior of individual agents such as consumers and firms, and macroeconomics, which studies the overall economy and large-scale economic factors such as inflation, unemployment, and economic growth. The discipline seeks to understand how economies function and how economic agents interact with one another. Economists use various models and theories to explain economic phenomena and to predict the effects of various policies and external factors on economic performance.