Economics is the social science that refers to the human activites related with the production, distribution and consumption of goods and services. Methods of economic analysis have been increasingly applied to fields that involve people making choices in a social contex, such as a crime, education, health, law, family, politics, etc. Economy transformed from primarily agriculture, forestry, fishing and textile manufacturing in 1947 to major heavy industry, transportation.
Economics help us examine trade-offs between various goals and anticipate the outcomes of changes in governmental polices, company practices, or conposition of the population and so on. The three most important economists were Adam Smith, Karl Marx, and John Maynard Keynes. Each was a highly original thinker who developed economic theories that were put into practice and affected the world's economies for generations. In economics, the term goods and services refers to everything that is produced in the economy all products and services, including Government Servcies such as National Defence.
The three major types of economies are usually referred to as command economies, market economies and mixed economies. In the market economy all decisions are made in a decentralized way, through the interaction of byers and sellers in individual markets. In the command ecomnomy, decisions are made by a central authority. In a mixed economy, many of the necessary decision are made in decentralized markets, but there is also some degree of government intervention in the economy.