Economics Definition and Terms

Read a clear Economics definition and learn of the various terms used in this field, including micro, macro, supply side and more.

Definition of Economics

People discussing the Economics definitionEconomics is the science that studies how people, firms, governments and nations make choices and decisions in allocating scarce resources. This ensures the satisfaction of their wants. It comes down to a social science that deals with the production and the use of goods and services. Additionally, it refers simply to how people use resources.

It is important to study Economics so that you can gain an understanding of how resources can best be distributed to meet the needs of all people. There is need for Economists in government as well as in various other agencies and businesses. There are two types of economics namely; microeconomics and macroeconomics. Check out these and the different economics terms, as follows:


Macroeconomics is the study of an entire system of economics. It concentrates on the aggregate economy activity of a whole country or the international market. It can, for example, study how a country uses resources, the time workers devote to leisure and work, effects of taxes on the population, or the productivity of various industries.


Microeconomics concentrates on individual consumers or how a factor affects parts of the economic system or industries. It draws attention to the dynamics between lenders and borrowers, and buyers and sellers.

More on the Economics Definition

The following pages provide lots of other important information on various economics terms.

These include managerialagriculturalgrowthfinancialhomeenvironmentalmicro and macrobehavioraltradingsupply sidedevelopment, and international economics. The pages present clear definitions of the particular topics and the benefits, etc., that they bring. You will be able to print the content of any of these pages if desired from

Economicsymh Helpful Resources:

Check out books at on Economics to learn even more about this very important topic. Many students and other interested persons have benefited from these books.