is the science that deals with the production, distribution and consumption of commodities, is the study of how people
behave when faced with limited choices or scarcity to satisfy needed resources
at any degree. Human behavior determines the quantity a good is produced and
how it is distributed and consumed. We can say that it anticipates how people
would react to certain event changes. Economics analyzes these irrational human
thinking and assumes a number of possible scenarios that would result from it.
Even for example every single person's income increased, their spending power
is increased and thus would buy more goods. On the the other side of the story,
supplies would be depleted and to prevent suppliers from running out of goods
to sell they would have to increase the price. From this we can see that the
continuous rise in prices of goods or income move in lockstep.
The word economics means one who
manages a household in Greek. As the name originally implies, managing a household
requires determining proper resource allocation to achieve optimal living standards
among its members with whatever resource is available. It is divided into two
branches, Macroeconomics and Microeconomics.