Economics is the study of the choices made by people, businesses, and governments regarding how they use limited resources (which can be money, time, materials, or even human skills). Since we are limited and can’t have everything we want, economics helps everyone make considerations about what to produce, how to produce it, and for whom can consume it.

Ultimately, economics is present in every day decision-making. You make an economic choice every time you choose to spend money on a snack instead of saving it. A government makes an economic choice when it decides to build a hospital instead of a highway. Economics looks at small scale decision making (microeconomics) as well as large scale decisions related to inflation, unemployment, and trade (macroeconomics).

Economics also looks at supply and demand, how much people want of a product, how many products are available, and how those variables impact prices. Economics helps to explain why food prices fluctuate, why some jobs pay others more, or why some countries are wealthier than others. It is not all about money; it is more about people, choices, and their outcomes.

The importance of studying economics, is that it helps us understand the world we inhabit. Economics is used to learn to think in a rational and systematic way; we can measure costs and benefits; make better decisions; and provide accountability along with governments and businesses making use of and allocating resources. 

It is the scientific study of reasoning. Economics helps us understand our world—and as we can understand an entire process one decision at a time, wherever there is choice there is economics—whether it is a decision to buy a chocolate bar or a government decision regarding a national budget.