What Is Economics

Economics is a social science that studies the behavior of human beings as it affects the supply of goods, as well as the distribution of goods in an efficient and equal manner among the members of the society. It is based on the fact that most resources are scarce, and therefore equal and just distribution of such must be addressed.

The study of economics has undergone several changes in the past years, especially with the emergence of new and increasingly complex economies in the world today. Economics is employed in the formulation of economic policies of nations and government, as well as by large corporations and institutions.

The two main fields of economics are macroeconomics and microeconomics. Microeconomics deals with the study of small sectors of companies as well as individual economic decisions, such a buying a car or choosing wheere to eat dinner. Macroeconomics deals with the world economy and focuses on inflation, employment and industrial production.

Economics deals primarily with the distribution of resources. There are four main categories of resources: land, labor, capital and entrepreneurship. All of these come together to produce goods and services which are created to satisfy wants and needs. Goods are the tangible aspect of the product—something which can be felt, touched, and seen. Services are intangible—someone can be seen doing a service and get paid for it, but it cannot be touched, seen, or taken home. Goods and services are also scarce, since they are a product of land, labor, capital, as manipulated by entrepreneurs to provide for the needs of the consumer.