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 resources, which are often limited, to meet their needs and wants. Economics is divided into two main branches: microeconomics, which focuses on the behavior of individual agents, such as households and firms, and macroeconomics, which analyzes aggregate economic phenomena, including national income, inflation, and unemployment. Economists use various models and theories to explain how economies function and to predict the effects of economic policies and decisions. The discipline encompasses diverse topics such as market behavior, economic growth, trade, and public policy, aiming to understand and improve economic outcomes.