Economics

Economics is all about understanding how people make choices, how markets work, and how resources get divided up. This tutorial page will break down those big questions into bite-sized pieces, like why your favorite pizza costs what it does, or how saving money affects the whole economy.

FAQ

Frequently Asked Questions

Economics is a social science that focuses on the production, distribution, and consumption of goods and services. The study of economics is primarily concerned with analyzing the choices that individuals, businesses, governments, and nations make to allocate limited resources.

In the 20th century, English economist Lionel Robbins defined economics as “the science which studies human behaviour as a relationship between (given) ends and scarce means which have alternative uses.” In other words, Robbins said that economics is the science of economizing.

Studying economics gives students an insight into how political decisions and the wider world are influenced by the abundance or scarcity of resources.

There are two main branches of economics, microeconomics, and macroeconomics. Microeconomics deals with the behavior of individual households and firms and how that behavior is influenced by government. Macroeconomics is concerned with economy-wide factors such as inflation, unemployment, and overall economic growth.

Each economy functions based on a unique set of conditions and assumptions. Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.

PV Narasimha Rao is referred to as the “father” of Indian Economics for the introduction of the free market reforms during his tenure.

Economics is regarded as a social science; it studies how people in an economy employ the already scarce resources with or without using money.

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