Economics is defined as the study of how societies, governments, businesses, households, and individuals allocate scarce resources. It can be divided into microeconomics, which examines individual agents and markets, and macroeconomics, which looks at an overall economy and issues like growth, inflation, and employment. Economics provides positive analysis, which objectively describes economic situations, as well as normative analysis, which makes recommendations about what economic policies and outcomes would be most desirable.

1. -A small discussion