Economics

About Economics

Economics studies how people make decisions when resources are scarce. Scarcity means that wants for goods, services and resources exceed what is available, so individuals, families, businesses and societies make choices about how to use limited resources. Economics therefore examines more than money: it asks how choices are made and how resources are used. Microeconomics focuses on parts of the economy, including individuals, firms and industries, while macroeconomics looks at the economy as a whole, including growth, unemployment and inflation.

Economists use theories and models as tools to analyze problems and work toward answers. A model simplifies a question so that learners can examine relationships, identify assumptions and ask what may change when conditions change. For example, supply and demand models relate price to the quantities buyers and sellers are willing to exchange, and identify a market equilibrium where quantity demanded equals quantity supplied. Macroeconomic study also considers economy-wide outcomes and policy questions, while empirical work examines evidence and examples. You can begin with scarcity and choice, then follow the sections on markets, macroeconomics or policy according to your interests. The resources here include an open introductory text and university courses, so you can learn through readings, lectures and problems. As you study, practice stating the question, naming the assumptions and connecting a conclusion to the model or evidence used.