Economics is a social science which studies the production & consumption of goods and the transfer of wealth to produce & obtain those goods.
The term ‘economics’ comes from the Ancient Greek ‘oikos’ which means ‘house’ and ‘nomos’ which means ‘custom’ or ‘law’. The subject was earlier known as ‘Political Economy’.
However, in the late 19th century, the economists suggested ‘economics’ as a shorter term. Economics explains how people interact within markets to fulfill their desires/wants/goals. Also, if one properly studies economics, he/she can comprehend why certain people and/or government/s behave in particular ways.
According to Dr. Alfred Marshall, “Economics is the study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected and social action which is most closely connected with the attainment and use of the material requests of wellbeing.”
There are two main types of economics viz. Macro Economics and Micro Economics. Micro Economics: Study of economic behaviour of an individual unit. Macro Economics: Study of economic behaviour of the economy, as a whole. The terms ‘Micro Economics’ and ‘Macro Economics’ were coined and eventually used by Ragnar Frisch of Oslo University in 1933.