Economics is the study of how societies allocate scarce resources to satisfy

unlimited wants. It encompasses the analysis of production, distribution, and

consumption of goods and services, as well as the behavior of individuals,
businesses, and governments in response to economic incentives. At its core,
economics seeks to understand how decisions are made in the face of scarcity,
examining factors such as supply and demand, prices, costs, and benefits. Through
various theoretical models and empirical methods, economists strive to explain and
predict economic phenomena, ranging from individual choices to global economic
trends.

The field of economics is broadly categorized into microeconomics and

macroeconomics. Microeconomics focuses on the behavior of individual agents, such
as consumers and firms, and how their interactions determine market outcomes.
Macroeconomics, on the other hand, examines aggregate phenomena such as inflation,
unemployment, economic growth, and the role of monetary and fiscal policy in
influencing these outcomes.

Economics also extends beyond the realm of traditional markets to encompass broader
issues such as environmental sustainability, inequality, development economics, and
the impact of technological change on employment and productivity. It serves as a
vital tool for policymakers, businesses, and individuals seeking to make informed
decisions in a complex and interconnected global economy.