What is economy?
Economics is the study of how scarce resources are allocated to meet the needs and desires of individuals and societies. It analyzes the production, distribution, and consumption of goods and services, as well as the behavior of individuals, businesses, and governments in making economic decisions.
Economics is divided into two main branches:
- Microeconomics: Focuses on the behavior of individuals and businesses in markets, such as price determination and resource allocation.
- Macroeconomics: Examines the economy as a whole, including economic growth, inflation, unemployment, and fiscal and monetary policies.
Economics affects our daily lives, from determining product prices in markets to government policies that impact income, jobs, and investments.
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