Economics

Economics is the social science that studies how individuals, businesses, and governments make decisions about the allocation of scarce resources. It examines how these entities interact within markets to produce, distribute, and consume goods and services. Economics is divided into two main branches: microeconomics, which focuses on individual and business decisions, and macroeconomics, which looks at the broader economy, including issues like inflation, unemployment, and economic growth. Economics helps explain how economies function and provides insights into how policy decisions can impact financial markets and everyday life.

Example

Economics helps policymakers understand the impact of interest rate changes on consumer spending and business investment.