Economics is the study of how individuals and groups of individuals deal with scarcity, i.e., how they make choices about using limited means (resources) to achieve limitless ends (human wants).  Note that this is a very general definition, implying a very broad application of economics principles.

In economics we study different economic systems like socialism and capitalism, and the important role markets play in the latter.  We also study the performance of economies, in terms of the rate of growth of total production and consumption of goods and services, the level of unemployment of labor, and the rate of change of the average price level, what we call inflation.

Economics has existed as a formal discipline in universities since the early 19^th century.  In a sense, economics is the “mother discipline of business,” like physics is to engineering, and anatomy and physiology are to medicine.

Follow the link to see pictures of famous economists and read about the major economic idea they came up with.