Economics is the social science that studies the production, distribution, and consumption of goods and services. It deals with the allocation of scarce resources among competing demands. Economics has two main branches: microeconomics, which focuses on the behaviour of individuals and firms, and macroeconomics, which looks at the performance of the economy as a whole.
The law of supply and demand, which states that the balance between a good or service's availability and the level of demand for it determines its price, is one of the fundamental ideas in economics. This principle is used to explain how markets work and how prices are set.
Another important concept in economics is the notion of opportunity cost, which refers to the cost of choosing one option over another. For example, if you decide to go to college, the opportunity cost is the money you could have earned if you had entered the workforce instead.
Economics has many practical applications, such as in business, public policy, and personal finance. By understanding the principles of economics, you can make informed decisions about how to allocate your resources and maximise your well-being.
Economics
Related Semantic Entities for Economics