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Economics: is the science of society that examines how people, businesses, and governments make choices on how resources can best be directed, in the most efficient way, to satisfy their wants and needs. It analyzes how such decisions have impacts on the production, distribution, and consumption of such goods and services. With the help of variables for supply and demand, market behavior, and forms of economic policy, economics explains how economies work and how a particular factor influences economic results, including growth, inflation, and unemployment. But, it sheds light on the fundamentals that drive economic activity and the effects of choices at the micro and macroeconomic levels.
Economics is vital because it provides a guiding framework under which issues of resource scarcity within societies and how such societies fulfill their needs and desires are derived. Economics helps with the analysis of decisions, management of trade-offs, and responses to different challenges by individuals, businesses, or governments. The study of economics provokes insights into how markets work, how policies affect economic outcomes, and how global events impact lives locally. This awareness enables decision-makers to make decisions and frame policies, which would be productive for a growth-oriented economy, to facilitate sustainable development leading to the improvement in the quality of life and growth for sustainable economic progress.
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