The basic purpose of studying economics is to understand how various economies and their components work, how an economy is organized, and how successfully it achieves its basic objectives. The term economics is derived from two Greek words ‘oikou’ and ‘nomos’; meaning the rule or law of the households. Economics seeks to answer question relating to the economic behavior of the people, the society and the economy. To be brief, economics studies the economic behavior of the people. In the early days, economics was not studied as a different subject. But in the modern days it has expanded to include a vast range of topics. Now, the economics 1. studies how prices and quantities of goods and services that are produced and sold in the market are determined by the demand and supply forces 2. studies how the prices of labor, capital and land are set in the economy, and how these prices are used to allocate resources 3. explores the behavior of the financial markets and analyze how they alloc...