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Economics is the branch of knowledge that concerned with the consumption, production and transfer of wealth. It focuses on the work of economies, and on the behavior and interactions of economic agents. Scarcity is the main concept of economics. Scarcity is a situation in which the amount of something available is not desirable as per as the requirements. It refers to the stress between our unlimited needs and our limited available resources. For a country, these resources include labor force, technology and natural resources. For an individual, these resources include skill, time and money. Because of this, an economies and people must take decision over how to allocate their resources. Two main branches of economics are as follows:
Macroeconomics – it is the branch of economics that deals with the large scale economic factors such as government. Supply and demand is the main concept of macroeconomics which tells the amount of a product, or availability of services.
Microeconomics- it is the branch of economics that deals with the small scale economic factors. It also concerned with the effects of individual decisions. It mainly focuses on the interaction between buyer and seller, respond of people and companies to price changes.
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