Economics

Definition

Economics is the study of how individuals, businesses, governments, and societies make choices about ways to allocate limited resources to meet their unlimited wants and needs. It examines the production, distribution, and consumption of goods and services.

Related terms

Scarcity: The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.

Supply and Demand: A theory that explains the interaction between the sellers of a resource and the buyers for that resource, which determines the price of the good or service.

Market Economy: An economic system in which economic decisions and pricing are guided by the interactions of citizens and businesses