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![[Introduction to Economics] What is economics? - Class 6 - Concepts](https://cdn.teachoo.com/d2b34015-9c87-4f85-be82-0a7fc8d3a879/market---teachoo.png)
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Economics is the
social science
that studies how people make choices to satisfy their unlimited wants and needs with limited resources.
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Economics helps us to
understand how individuals, households, firms, governments and other organizations interact in the market
and influence the production, distribution and consumption of goods and services.
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Economics also helps us to analyze the
effects of various policies and events on the economy
and society at large.
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Economics can be divided into two main branches:
microeconomics and macroeconomics.
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Microeconomics
studies the behavior and decisions of individual units,
such as consumers, producers, markets, etc.
- Macroeconomics studies the behavior and performance of the economy as a whole, such as national income, inflation, unemployment, etc.
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Microeconomics
studies the behavior and decisions of individual units,
such as consumers, producers, markets, etc.
