Economics is the study of how people, businesses, and governments use limited resources to satisfy unlimited needs and wants. It explains how goods and services are produced, distributed, and consumed in society. Economics is divided into two main branches: microeconomics, which studies individual units like households and firms, and macroeconomics, which focuses on larger systems like national income, employment, inflation, and economic growth. 

The study of economics is important because it helps us understand problems like poverty, unemployment, and price rise, and also provides solutions to improve living standards. It guides policymakers in making decisions about taxation, trade, banking, and development. For students, learning economics develops analytical skills, problem-solving ability, and awareness of how the world’s financial systems work. Thus, economics plays a key role in shaping both individual lives and the progress of nations.