economics is the study of how societies use scarce resources to produce valuable Commodities and distribute them among different people it examines the behaviors and interactions of individuals businesses governments and nations in making decisions about resource allocation economics is divided into two main branches microeconomics focuses on the individual and business decision making processes it examines how consumers and producers make choices how they interact inket markets and how prices are determined it also explores Market mechanisms supply and demand and the impact of government policies on these micr level activities macroeconomics deals with the economy as a whole it studies aggregate indicators such as GDP gross domestic product unemployment rates inflation and national income macroeconomics analyzes how these indicators are interconnected and how government policies such as fiscal and monetary policy influence over