Economics ( / ˌ ɛ k ə ˈ n ɒ m ɪ k s , ˌ iː k ə -/ ) [1] is a social science that studies the production , distribution , and consumption of goods and services . [2] [3]
Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and markets , their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the economy as a system where production, consumption, saving, and investment interact, and factors affecting it: employment of the resources
Other broad distinctions within economics include those between positive economics , describing "what is", and normative economics , advocating "what ought to be"; [4] between economic theory and applied economics ; between rational and behavioural economics ; and between mainstream economics and heterodox economics . [5]