Economics is a social science that studies the allocation of resources that have alternative uses; the production, distribution, and consumption of goods and services.
It focuses on the behavior and interactions of economic agents and how economies function. Microeconomics analyzes basic elements within economies, such as individual agents and markets, while macroeconomics examines economies as systems, considering factors like inflation, economic growth, and public policies.
The field of economics encompasses various distinctions, including positive economics (describing "what is") and normative economics (advocating "what ought to be").
It also differentiates between economic theory and applied economics, rational and behavioral economics, and mainstream and heterodox approaches.
The publication of Adam Smith's "The Wealth of Nations" in 1776 is often considered the birth of economics as a separate discipline, introducing concepts like the three factors of production and the benefits of specialization and division of labor.