Economics is the social science that studies how individuals, businesses, governments, and nations make choices about allocating resources. It focuses on the production, distribution, and consumption of goods and services, and aims to understand how economic agents interact within an economy to make decisions that affect wealth, well-being, and the overall functioning of societies. Key Branches of Economics Economics is typically divided into two main branches: microeconomics and macroeconomics . 1. Microeconomics Microeconomics focuses on the individual units within an economy, such as households, firms, and industries. It deals with how these entities make decisions about the allocation of resources, prices, and production. Key concepts in microeconomics include: Supply and Demand : The relationship between the quantity of a good or service available and the demand for it, which determines the price. Elasticity : The responsiveness of quantity demanded or supplied to changes ...
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