Economics could be a science that analyzes the alternatives made by people and governments in allocating scarce resources. While this definition sounds rather scientific, the general public have a fairly intuitive understanding of the laws of supply and demand.
When making purchasing decisions, we all decide what products or activities fit into our schedules, budgets, and needs; and thru these economic choices, we vote for what we wish to be available in our market and at what price. The national economy is that the social institution through which goods and services are produced, distributed, and consumed. As you’ll surmise, the economic decisions that we make affect economic systems that are often global in scope. there’s a mixture of domestic and international policies that allocate resources, commodities, labor, tariffs, so thereon go into the value composition of the products and services that we purchase and consume. These factors, however, emerge on a pair of different levels that economists study: microeconomics and macroeconomics.