Economics is the social science that studies how individuals, businesses, governments, and other organizations make choices about how to allocate resources. Resources are typically limited, so economics explores the trade-offs and decisions involved in the production, distribution, and consumption of goods and services.
There are two main branches of economics:
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Microeconomics: This branch focuses on the behavior of individual agents, such as households, firms, and industries. It examines topics like supply and demand, market structures, pricing, competition, and consumer behavior.
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Macroeconomics: This branch looks at the economy as a whole and studies larger economic factors, such as inflation, unemployment, national income, economic growth, and government policies (like fiscal and monetary policy).
Economics uses a range of models, theories, and tools (such as graphs and equations) to understand economic behaviors and predict the effects of various policies and actions.