Economics studies how to allocate scarce resources among alternatives uses.So the importance of economics is that without this science it would be very difficult to use given limited amount of resources in the most effective and productive way. Economics consist of micro -and macroeconomics former studies economy in particular country solves real life problems such as inflation ,unemployment ,etc. While the latter studies economic relations between countries and how they agree about different aspects such as export and import. Economics explains present in modern world such as credit crunch,overcrowding of some countries, etc.
As we know there are unlimited wants of that people have and even if they get at once everything what they want, new wants will appear. However, needs of people are limited to the most important things such as food and cloth,and so economics studies the relation between limited resources and unlimited wants.
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