Economics is the social science that studies the production, distribution, and consumption of goods and services. It examines how individuals, businesses, governments, and societies make choices about allocating scarce resources to meet their needs and desires. The field is broadly divided into two main branches: microeconomics, which focuses on the behavior of individual agents such as consumers and firms, and macroeconomics, which looks at the economy as a whole, analyzing aggregate indicators like gross domestic product (GDP), unemployment rates, and inflation. Economics also explores various concepts such as supply and demand, market structures, and the impacts of government policies on economic activity. It employs both qualitative and quantitative methods to understand economic phenomena and to provide insights into how economies operate and how economic agents interact.