Economics is the study of how people make decisions to use resources in the most efficient way. It is the study of how individuals, businesses, governments, and societies make choices on how to manage the scarce resources they have, and how these choices affect prices, production, and trade. For example, if a business is faced with a limited amount of resources, they must decide how to use those resources to produce the best possible outcome. If they decide to produce more of one item than another, they must consider whether the cost of production is worth the cost of the items they are producing, and how much of each item the market will demand. Economics also looks at how people interact with each other in terms of markets and trading. For example, if a business wants to purchase a certain product from another business, they must consider the cost of the item, the terms of the transaction, and the potential risks associated with the purchase. Finally, economics looks at how governments and societies make decisions about how to use their resources. This includes decisions about taxation, public spending, and the distribution of resources. An interesting fun fact about economics is that the study of economics is sometimes referred to as the “dismal science”, a phrase coined by Scottish historian Thomas Carlyle in the 19th century.