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explains what Economics is about, how economists study economies, and how economics affects the world. Economists study the choices made by people, companies and governments. They try to understand the consequences of many people's choices, when all of these choice are combined together. For example, if many people buy products imported from other countries, then those people might be able to buy high-quality or cheap products. Then a country's own companies must make better or cheaper products if they want to compete. Economics is also about big questions like whether healthcare should be free or how we can make sure that everyone has enough food to eat. These are choices too. So, Economics is really about choices and their consequences. Economists try to predict what will happen in the economy by predicting the choices that people will make. An 'economy' means all the buying and selling that happens in a country. In an economy, people and companies exchange goods and services for money. For example, food or electricity. When a farmer decides to grow tomatoes, and when a company decides to buy and sell those tomatoes, and when people decide to buy the tomatoes, these are all choices. Goods and services do not have to be exchanged for money, but in the modern world this is usually how they are exchanged. affect what is produced costs Economists study economies (the plural word for more than one 'economy') by collecting information about people's choices. They use special economic vocabulary and statistics to describe those choices. They also develop theories to help them understand what choices people usually make in different situations. For example, they predict when people will spend money and when they will save it. Economics is a special kind of thinking and skill, and economists use their knowledge to understand and improve the world. Economists are like doctors. Doctors try to understand how human bodies work and how to treat medical problems. Economists try to understand how economies work and how to fix economic problems. There are many kinds of economic problems, for example, when a country cannot produce enough of something for its needs, or when companies are not successful and many people are unemployed, or when prices go up too quickly, or when businesses cannot get money from banks to finance their operations. There are two main kinds of Economics, microeconomics (which studies small-size things like individual people, companies and industries) and macroeconomics (which studies large-size things like whole countries and international economic relations).

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