Introduction to ECONOMICS andMARKETINGEconomics is a social science that studies how individuals, governments, firms andnations make choices on allocating scarce resources to satisfy their unlimited wants.Economics can generally be broken down into: macroeconomics, which concentrateson the behavior of the aggregate economy; and microeconomics, which focuses onindividual consumers.Two of the major approaches in economics are named the classical and Keynesianapproaches. Classical economists believe that markets function very well, will quicklyreact to any changes in equilibrium and that a "laissez faire" government policy worksbest.On the other hand, Keynesian economists believe that markets react very slowly tochanges in equilibrium (especial to changes in prices) and that active governmentintervention is sometimes the best method to get the economy back into equilibrium.