Economics is basically the study of scarce resources and their distribution in the society and world at large. In today’s terms, the discipline is mainly concerned with the nature and distribution of wealth as a resource. It includes analysis of markets, trends and variety of exchanges which occur between or within nations and is ultimately associated with studying the production of goods and services and how they impact an economy as a whole.
The term “economics” can be understood as a branch of science concerned with the use of market mechanisms and economic interactions to solve social problems, especially problems that at times may not be directly related to production and exchange, but are economic in nature.
When we study the factors like demand and supply at an aggregate level or at the level of a country, then it is called as Macroeconomics and when we consider the factors to be at individual level, then it is termed as Microeconomics. Macro and Micro economics are the two main types of economics under which we can understand that how a state and an individual can make decisions respectively.
The general principles of economics are how resources are used in a society, the types of activities that bring about economic growth, and the manner in which people relate to a certain economic phenomena.
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