Economics is the study of how individuals and societies choose to employ those resources: what goods and services will be produced, how they will be produced, and how they will be distributed among the members of society.

The subject economics is divided into two sections: microeconomics (micro) and macroeconomics (macro).

  • Microeconomics: Micro-economics explains how demand and supply affect prices, wages, rentals, and interest rates. Microeconomics is concerned with how consumers (buyers) and producers (sellers) come together to exchange goods and services, how much is produced, what to produce, and the going prices.
  • Macroeconomics: Microeconomics studies the behavior of specific sectors of the economy, such as companies, industries, or households. Macro-economics focuses on the aggregate (large-scale) demand for goods and services, and especially on the relationship between unemployment and the economy.

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