Economics

Economics is the social science that studies the production, distribution, and consumption of goods and services. It examines how individuals, businesses, governments, and nations make choices about allocating resources, which are often limited, to satisfy their needs and desires. Economics is divided into two main branches: microeconomics, which focuses on the behavior of individual consumers and firms, and macroeconomics, which analyzes economy-wide phenomena such as inflation, unemployment, and gross domestic product (GDP). Central to economics are concepts such as supply and demand, market equilibrium, and the role of incentives. Economics seeks to understand how economies function and the factors that drive economic growth and stability. It employs various methods, including mathematical models, statistical analysis, and historical case studies, to interpret economic behavior and inform policy decisions.