Economics could be best referred to as the research that defines how people and society decide to satisfy their wants and needs using the limited sources that are offered for them.
Study regarding economics could be split into two major branches that are:
Microeconomics: Microeconomics mainly concentrates on individual people and companies. It explains how individuals react when dealing with decisions about spending or investing their hard-earned money and just how individual firms behave when their rivaling other firms.
Macroeconomics: Macroeconomics concentrates on the economy in general, searching at various factors which might affect it for example rates of interest, inflation, and unemployment. Additionally, it focuses on economic growth and government interventions.
Why Do Important?
The answer is easy. Economic involves our everyday existence. We make economic decisions when we are selecting a movie or deciding things to eat for supper. Exactly what involves weighing many choices and sacrificing just one benefit for any greater benefit is definitely an economic decision. Which means that everything we all do relates to economics and cash in some way whether we love to it or otherwise.
We have to face limitations and constraints every day. Researching economics will help you know how people and society make use of the limited sources in the perfect method to fulfill human wants and needs.