Introduction to Economics
                     Introduction to Economics
Economics is a social science that studies how individuals, businesses, and governments make
choices about allocating scarce resources to satisfy unlimited wants. It helps us understand daily
decisions, market behavior, and national economic issues.
Branches of Economics
1. Microeconomics: Deals with individual units such as consumers, firms, demand, supply, and
price determination.
2. Macroeconomics: Studies the economy as a whole, including national income, inflation,
unemployment, economic growth, and government policies.
Basic Economic Problems
Every economy faces three basic problems due to scarcity:
• What to produce?
• How to produce?
• For whom to produce?
Importance of Economics
Economics helps in understanding market trends, making business decisions, framing government
policies, and improving overall living standards