Economics has a variety of definitions. Above all, it is a scientific discipline, thus a science of human decisions and actions in a world of limited resources and unlimited needs. It deals with production, distribution and consumption of goods and services. Economics actually answers the questions:
- What to produce?
- How to produce?
- For whom to produce?
Economics is usually divided into:
- Microeconomics - examines the behavior of individual economic players - households, firms, state (the subject of microeconomics can thus be a large multinational corporation)
- Macroeconomics - examines the behavior of the economy as a whole - the production, inflation, unemployment, foreign and international trade, fiscal and monetary policy (the subject of macroeconomics thus can be an economy of a very small country - smaller than the above-mentioned multinational corporation)