Economics:

Economics has been defined is several ways, but can be broadly described as the social science that attempts to explain all business phenomena. It is a study of human behavior, where rational decisions are made on the basis of the choices that are available to people. Economics has several dimensions- these dimensions include social, scientific, ethical and legal dimensions. The scope of economics encompasses almost all aspects of the society, and hence it is highly relevant in today’s world, since all activities are based on it. It deals with decisions that people make and the basis on which they make these decisions. It explains the actions of people, businesses and governments and how these decisions are made by comparing the costs and benefits. Economics generally deals with decisions or choices that are made on the basis of scarcity and allocation of resources. The final question deals with allocation of scare resources among alternate uses. This could be in microeconomic terms such as the decisions of individual consumers, producers, firms, and markets or in a broader macroeconomic sense in terms of aggregate demand, aggregate supply, aggregate markets, and aggregate output of goods and services in an economy. In the purview of international trade, or within the scope of the global economy, it deals with the decisions of countries of whether to trade and what to trade. Hence the study of economics will include topics such as Macroeconomics , Microeconomics , International Economics, managerial economics, environment economics, and political economics. Each of these topics covers specific aspects of economics. Microeconomics deals with individual- specific actions such as demand and supply, production, consumption, prices, allocation of resources, opportunity cost, markets and market structures and the behavior of firms. Macroeconomics deals with aggregate terms. International trade deals with the way international business is conducted. Environment economics deals with cost benefit analysis of pollution and other environmental issues that affect the economy.