Economics focuses on optimal choices along with the incentives and constraints that determine decision making for individuals, firms, and institutions. Since unlimited wants generally have to be met by limited means, the study of economics provides a careful analysis and thorough understanding of the processes with which wealth is produced, distributed, and consumed. The economy’s importance to all societies and the human condition, as well as the key methodology of modeling decision making, make economic knowledge useful to many other fields, such as political science, sociology, anthropology, biology, engineering, law, and history. It, thus, is an important field of study and as central to a liberal arts education as it is to the business program.
The study of economics involves