Economics

Economics is the social science that studies the production, distribution, and consumption of goods and services. It examines how individuals, businesses, governments, and nations make choices on allocating resources to satisfy their needs and wants.

Examples of economics include:

• Microeconomics: Analyzing how a single consumer decides to purchase a particular brand of cereal based on price and preference.
• Macroeconomics: Studying national policies that influence overall economic growth, such as Interest Rates set by a Central Bank.

Cases illustrating economic principles:

• The Law of Supply and Demand can be seen in the housing market, where prices rise when demand exceeds supply.
• The concept of Opportunity Cost is exemplified when a student chooses to attend college instead of entering the workforce, representing the income they forgo while studying.