Economics is a social science that studies how people, businesses, governments, and societies make choices under conditions of scarcity. In other words, it's the study of how people allocate limited resources to produce, distribute, and consume goods and services.
Economists are interested in understanding how these choices are made and what the consequences of these choices are. They use a variety of tools to analyze economic data, including mathematical models, statistical analysis, and historical research.
There are two main branches of economics: microeconomics and macroeconomics.
- Microeconomics focuses on the behavior of individual agents, such as consumers, firms, and workers. It examines how these agents make decisions about what to produce, consume, and invest.
- Macroeconomics focuses on the behavior of the economy as a whole. It examines issues such as inflation, unemployment, and economic growth.
- Teacher: Maureen WANJIRU