Category: Basic

Unlike physics or chemistry, economics deals with human beings whose behavior is unpredictable. For example:

Both are important because policymakers need facts (positive) as well as social goals (normative).

Case Study 1: COVID-19 Pandemic (2020) The global pandemic highlighted the importance of economics. Governments had to make tough choices: The crisis showed how scarcity and choice are central to economic decision-making. Case Study 2: Oil Price Fluctuations When oil prices rise, transportation becomes expensive. This leads to higher prices of food and goods. Economists…

A. Importance for Individuals B. Importance for Businesses C. Importance for Governments D. Importance for Global Society

Economics can be divided into different areas of study:

Every economy, whether small like a village or large like a country, must answer three central questions: Different economic systems (capitalism, socialism, mixed economy) answer these questions in different ways.

The subject of economics has evolved through centuries.

Economics is often called the “queen of social sciences” because it touches nearly every aspect of our lives. Whether we are deciding how to spend our pocket money, how businesses decide their pricing strategies, or how governments draft national budgets, economics plays a role. At its heart, economics studies the relationship between limited resources and…