Economics is typically defined as the social science which studies the behaviour of people in terms of the choices made by individuals and societies in the face of scarcity. Scarcity here refers to the situation of having finite and limited resources, while also having limitless wants by agents within society. Because of this gap, all societies are tasked with answering three fundamental questions: What to produce? How to produce it? And for whom should this be produced?

These problems can be broken down and studied under two major categories: microeconomics and macroeconomics. Microeconomics focuses on disaggregated sectors within the economy. More specifically, it studies the decision making of firms, individual consumers, and households. Macroeconomics, on the other hand, focuses on aggregated sectors within the economy. This branch of economics is concerned with policy recommendations and evaluates aspects such as the general price level, employment, and economic output.

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