Economics
📈 Investing
Quick Definition
Economics is the social science that studies the production, distribution, and consumption of goods and services, focusing on how individuals, businesses, governments, and nations make choices about allocating resources.
Examples
- 1A government deciding how much to spend on infrastructure versus healthcare.
- 2A business determining the price of its products based on demand and supply conditions.
- 3Consumers choosing between saving money or spending it on new gadgets.
- 4An economist analyzing the impact of a decrease in interest rates on consumer spending.
Tags
economicsresource-allocationconsumer-behaviormarket-analysisfinancial-decision-making
Related Terms
Other terms you might find helpful
Fiscal Policy
Fiscal policy refers to the government's use of spending and taxation to influence the economy.
Macroeconomics
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole, focusing on aggregate changes in the economy such as GDP, unemployment rates, and inflation.
Monetary Policy
Monetary policy refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals.
Quick Info
Category:Investing
Difficulty:basic
Last Updated:6/19/2025