Economy, Economics

social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Greek for oikos (house) and nomos (custom or law), hence "rules of the house(hold)."
A definition that captures much of modern economics is that of Lionel Robbins in a 1932 essay: "the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." Scarcity means that available resources are insufficient to satisfy all wants and needs. Absent scarcity and alternative uses of available resources, there is no economic problem. The subject thus defined involves the study of choices as they are affected by incentives and resources.
Areas of economics may be divided or classified in various ways, including:
microeconomics and macroeconomics
positive economics ("what is") and normative economics ("what ought to be") mainstream economics and heterodox economics fields and broader categories within economics.
One of the uses of economics is to explain how economies work and what the relations are between economic players (agents) in the larger society. Methods of economic analysis have been increasingly applied to fields that involve people (officials included) making choices in a social context, such as crime [3], education [4], the family, health, law, politics, religion [5], social institutions, and war
Areas of economics

Areas of economics may be classified in various ways, but an economy is usually analyzed by use of microeconomics or macroeconomics.
Microeconomics

Microeconomics examines the economic behavior of agents (including individuals and firms) and their interactions through individual markets, given scarcity and government regulation. Within microeconomics, general equilibrium theory aggregates across all markets, including their movements and interactions toward equilibrium. Partial equilibrium is concerned with interactions in one market, taking prices from other markets as given. Other fields in microeconomics, such as game theory or industrial organization, deal with strategic interactions, (i.e. where each agent takes into account the actions of other agents).
Macroeconomics

Macroeconomics examines the economy as a whole "top down" to explain broad aggregates and their interactions. Such aggregates include national income and output, the unemployment rate, and price inflation and subaggregates like total consumption and investment spending and their components. It also studies effects of monetary policy and fiscal policy. Since at least the 1960s, macroeconomics has been characterized by further integration as to micro-based modeling of sectors, including rationality of players, efficient use of market information, and imperfect competition.[2] This has addressed a long-standing concern about inconsistent developments of the same subject.[3] Analysis also considers factors affecting the long-term level and growth of national income within a country and across countries.