Economics is the study of choices individuals make given the presence of scarcity.
Everyone experiences scarcity, which means having unlimited wants and facing limited resources. It is impossible to get everything you want because of scarcity. This is why you must choose. Economists study these choices that scarcity forces you to make.
Microeconomics focuses on analyzing the choices of a single decision maker such as an individual, a household, or a business.
Macroeconomics focuses on aggregating these single decision makers to look at the overall picture of an economy as a whole.
Economics is a social science, which means that it focuses on human and societal behaviors. There are many fields of study within this “Social Science” moniker including Anthropology, Criminology, Education, Linguistics, Political Science, Geography, Archaeology, Economics, History, Communication Studies, Sociology, and Psychology. Economics is a subject that overlaps with many different fields of study given its broad scope and application as the study of choice.
Economists use different methods of analysis. Mathematics is used as a tool to explain ideas in economics. Statistical methods are used as well in economics. Historical study may be employed to study economic phenomenon in the past. Economists study choices by using models, which may be expressed in equations, graphs, charts, tables, and other forms that help explain economic concepts.
Economists are social scientists who employ the scientific method of observation to investigate and test hypotheses. Then, the research findings of these studies, acquired by testing these hypotheses, serve to inform and shape public policy discussions and opinions.
Economists are known for their keen observation of the world around them and always asking “why?”