Economics is the study of how individuals, businesses, governments, and societies make choices about allocating limited resources to meet various needs and wants. It is divided into two main branches: Microeconomics, which focuses on the behavior of individual consumers, firms, and markets, and Macroeconomics, which examines broader economic factors such as inflation, unemployment, and national economic growth. Economists analyze the production, distribution, and consumption of goods and services, as well as how market forces such as supply and demand determine prices. The field also explores how government policies, like taxation and regulation, impact the economy and societal welfare. Economic theories provide insights into addressing real-world challenges, from poverty to environmental sustainability, and the decisions made by governments and businesses. A deep understanding of economics is crucial for various fields, including finance, public policy, and international relations.
