Economics is the study of scarcity, the study of how people use resources, or the study of decision making..
The economic study ranges from the very small to the very large. The study of choices by individuals (such as the way someone decides to budget their paycheck every month) is called microeconomics. Researchers have used the tools of microeconomics to measure the link between health and economic well-being, to study the impact of micro credit in poor countries, and to understand why people never seem to save as much for retirement as they would like.
The study of governments, industries, central banking and boom and the collapse of the economic cycle is called macroeconomics. Macroeconomics can help us answer some of the most important questions about how and why recessions occur, how increases in immigration or gas prices will affect the economy.