Economics

Economics (/ˌkəˈnɒmɪks, ˌɛkə-/)[1][2][3] is the social science that studies how people interact with value; in particular, the production, distribution, and consumption of goods and services.[4]

The supply and demand model describes how prices vary as a result of a balance between product availability and demand.

Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes basic elements in the economy, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies that have impact on these elements.

Other broad distinctions within economics include those between positive economics, describing "what is", and normative economics, advocating "what ought to be"; between economic theory and applied economics; between rational and behavioural economics; and between mainstream economics and heterodox economics.[5]

Economic analysis can be applied throughout society, in real estate,[6] business,[7] finance, health care,[8] engineering[9] and government.[10] Economic analysis is also applied to such diverse subjects as crime, education,[11] the family, law, politics, religion,[12] social institutions, war,[13] science,[14] and the environment.[15]