Economics is the study of how individuals, businesses, and governments make choices about allocating resources. It examines the production, distribution, and consumption of goods and services, helping us understand how economies function and how various factors influence economic decisions. At its core, economics seeks to explain how people respond to incentives and how these responses shape market dynamics. By analyzing trends and behaviors, economists can provide insights into issues like inflation, unemployment, and economic growth, ultimately guiding policymakers in making informed decisions that affect society as a whole.