The Principles of Economics

The Principles of Economics are foundational ideas that explain how individuals, businesses, and governments make choices about using limited resources to meet their needs and desires. They involve understanding supply and demand, the importance of incentives, trade-offs, the role of prices, and how markets coordinate activities. Economics also examines how people respond to policies and how overall economic systems function to allocate resources efficiently, promote growth, and improve well-being. These principles help us analyze how decisions are made, why markets work the way they do, and how economic outcomes can be influenced for better societal benefit.