Economics is the social science that analyzes the production, distribution, and consumption ofgoods and services.

Microeconomics examines the behavior of basic elements in the economy, including individual agents (such as households and firms or as buyers and sellers) and markets, and their interactions. Macroeconomics analyzes the entire economy and issues affecting it, including unemployment, inflation, economic growth, and monetary and fiscal policy. Other broad distinctions Positive economics (as opposed to normative economics) is the branch of economics that concerns the description and explanation of economic phenomena. Positive economics usually answers the question "why". To illustrate, an example of a positive economic statement is as follows: The price of milk has risen from $3 a gallon to $5 a gallon in the past five years. This is a positive statement because it can be proven true or false by comparison against real-world data. In this case, the statement focuses on facts. It focuses on facts and cause-and-effect behavioral relationships and includes the development and testing of economics theories Normative economics (as opposed to positive economics) is that part of economics that expresses value judgments (normativejudgments) about economic fairness or what the economy ought to be like or what goals of public policy ought to be. An example of a normative economic statement is as follows: The price of milk should be $6 a gallon to give dairy farmers a higher living standard and to save the family farm. This is a normative statement, because it reflects value judgments. This specific statement makes the judgment that farmers need a higher living standard and that family farms need to be saved.

Factors of production
factors of production means inputs and finished goods means output. nput determines the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called a production function. All factors of production like land, labour, capital and entrepreneur are required in combination at a time to produce a commodity. In economics, production means creation or an addition of utility. Factors of production (or productive 'inputs' or 'resources') are any commodities or services used to produce goodsand services.