Economics is that branch social science that analyzes the production, distribution and consumption of various goods and services. Resources are present in limited quantities and therefore should be used judiciously. Every society or economy wants to figure out the best possible way in which resources should be distributed so as to get maximum efficiency and maximum benefits. This best possible way can be figured out with the help of economics.
Certain things that are studied under the realm of this subject are: determination of prices and quantities of items, effects of taxes and regulation on economic value, effects of monetary and fiscal policies on the economy, determination of interest rates, the way firms compete and maximize profits etc.
Economics is divided into two main branches:
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