Economics is the study of how individuals, organizations, and societies allocate scarce resources to satisfy their unlimited wants and needs. It is a social science that analyzes the production, distribution, and consumption of goods and services.
Economics seeks to understand how people make decisions in different situations, such as how consumers decide what goods to buy, how firms decide what to produce and at what price, and how governments decide on policies such as taxes and regulations.
There are two main branches of economics: microeconomics, which focuses on the behavior of individuals and firms, and macroeconomics, which examines the broader performance of the economy as a whole, including issues such as inflation, unemployment, and economic growth.
Economists use a variety of analytical tools and models to study economic phenomena and to make predictions about future outcomes. These models help to simplify complex economic systems and allow economists to identify key variables and relationships between them.