Economics-1 (Economic Theory) 1. What is Economics? Definition of Economics Economics is a social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Economics analyzes how people make choices under scarcity, how they respond to incentives, and how they coordinate and cooperate with each other. Economics also examines the causes and consequences of economic growth, development, inequality, poverty, unemployment, inflation, trade, and public policies. 2. Nature and Scope of Economics The nature and scope of economics refer to the subject matter and boundaries of the discipline, as well as the method of analysis used by economists. There are different perspectives on the nature and scope of economics, but some common themes are: - Economics is both a science and an art, as it uses scientific methods to test hypotheses and empirical data to supp...