Cultural economics is the study of how culture and economic factors interact. It examines how cultural goods, such as art, music, and literature, are produced, distributed, and consumed. This field looks at the value of cultural activities and their impact on the economy, including job creation and tourism. Additionally, cultural economics explores how economic conditions can influence cultural expressions. For instance, during times of economic growth, there may be more funding for theater and museums, while economic downturns can lead to cuts in cultural programs. Understanding this relationship helps policymakers support the arts and preserve cultural heritage.