Answer – Economics is the study of how individuals, businesses, governments, and societies make choices to allocate limited resources such as land, money, or labor to satisfy their demands and requirements.

Explanation: 

Economics encompasses the analysis of various aspects related to resource allocation, production, distribution, and consumption of goods and services. These aspects could be employment, investment, savings, inflation, and international trade. For instance, consider a government that must allocate a limited budget to various sectors such as education, healthcare, and infrastructure development. Economics helps analyze how the government can distribute its finances most effectively to satisfy the diverse requirements of its citizens, while at the same time staying within budget constraints. 

 Some of the key aspects of economics are: 

• Microeconomics: This branch of economics examines individual economic agents, including consumers, firms, and specific markets.
• Macroeconomics: This branch of economics analyzes the economy as a whole, looking at factors such as inflation, unemployment, and economic growth.
• Supply and demand: It studies how the interaction between supply (goods and services) and demand (consumer preferences and purchasing power) determines prices and quantities in markets.
• Policy analysis: This provides insights into the impact of government policies on the economy, including taxation, trade, and monetary policy.
• Scarcity: Economics addresses the fundamental issue of allocating limited resources to fulfill human wants and needs.
• Efficiency: This aspect of economics focuses on achieving efficient resource allocation to maximize overall welfare and productivity.
• International economics: This deals with global trade, exchange rates, and international economic interactions.

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