Economics

Economics is the social science that studies the production, distribution, and consumption of goods and services. It examines how individuals, businesses, governments, and societies make choices about allocating resources to satisfy their needs and wants. Economics analyzes various systems, including markets and governments, and how these systems determine the prices of goods and services, the behavior of agents, and overall economic outcomes.

Economics is typically divided into two main branches: microeconomics and macroeconomics. Microeconomics focuses on individual and business decision-making processes, exploring how these entities interact in markets and respond to changes in supply and demand. Macroeconomics, on the other hand, looks at the economy as a whole, investigating aggregate phenomena such as inflation, unemployment, GDP growth, and fiscal and monetary policies.

The discipline employs both qualitative and quantitative methods, using statistical data and theoretical models to analyze economic relationships and predict future trends. Economists aim to understand how economic agents operate within different institutional frameworks and how policies can influence economic behavior and outcomes.