Economics

Definition

Economics is the social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their unlimited wants.

Related terms

Scarcity: This refers to the basic economic problem - the gap between limited resources and theoretically limitless wants.

Supply and Demand: These are economic models that determine price in a market. Supply refers to how much of something businesses offer for sale at each price level. Demand refers to how much consumers want to buy at each price level.

Macroeconomics: This is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole.