What is the importance of economics?

“Economics is a social science that studies individual and group decisions on how to use scarce resources to satisfy wants and needs”- Oxford Dictionary of Economics.
In a much simpler language, economics is a science that studies how people and groups make decisions, which would allow them to use the resources to the full potential and get the most out of them. It analyses how well the limited resources that are available are converted to satisfy the human wants and need. The behaviour of individuals, companies and various institutions are closely examined in order to avoid recession, inflation and high unemployment.
Study of Economics is divided into two main “pieces”: Macroeconomics and Microeconomics, each one of these focuses on different aspects of Economics. Macroeconomics looks at factors such as inflation, interest rates, unemployment, recession and how to avoid or reduce an already exciting problem using monetary and fiscal policies. Microeconomics, on the other hand, looks at individual people and businesses, looks at their behaviour concerning where to invest and what is the best way to spend earned money. It also investigates the firms that are trying to maximise their profits, looks at them individually and one firm competing another.
Macroeconomics and Microeconomics are two most essential parts in economics. They look at the behaviour of people, government, and businesses, poor government policies that can create inflation and recession. Macroeconomics has ways of “fighting” with recessions using Monetary and Fiscal policies. An English economist John Maynard Keynes first introduced these antirecessionary policies in 1936. Monetary policy is aimed to stimulate economic activity changing interest rates and the supply of money. Fiscal policy, is the one which is directly aimed to fight recession by increasing government spending or lowering taxes. These “tools” seem to work very well, although they are powerful means to fight recession, they too have their limitations.
Microeconomics looks closer into Supply and Demand issues. Demand is determined by the consumers, when Supply by the producer, microeconomics focuses on how these determine the prices of goods, it looks even closer at individuals with very limited income and how they get most happiness from that. It also examines competition between different firms and businesses, the problems which may be caused by the lack of completion between businesses, worst problem than can be resulted from the lack of competition is monopoly, or no competition at all. Usually in order to increase the prices monopoly businesses restrict their output, this creates problems for consumers, it “hurts” their interests.
Economics is quite a scarce science, which looks at many everyday factors that we face, consumption of goods, what we demand, whether we can afford to buy what we want, and we cant what to we do to maximise our happiness with the income that’s available. It also looks into behaviour of competitive firms and businesses, government policies, inflation and recession. Economics provides us with ways of balancing out demand and supply, avoiding inflation and recession.
Monetary and Fiscal policies help prevent recession by increasing money supply and government spending.
There are some ways of preventing the economy from failing, preventing inflation. There may be a trade off for example, attempts to increase economic growth may cause inflation. Also if a government tries to decrease inflation, this can lead to unemployment.
Economics is a science that closely studies all of this. Without economics, in my view, people would suffer, there would be high poverty no economic stability, there would be no markets, maybe we would not be able to exist without it. Frankly, it is quite hard for me to imagine a world without economics. It seems as such an essential science for today’s world. Economics “is important to our social life, political life, economic life and daily life.” (source)

Bibliography
“Economics for dummies” by Peter Antonioni and Sean Masaki Flynn
“Economics” by Richard G. Lipsey and K. Alec Chrystal
“Oxford Dictionary of Economics” by John Black, Nigar Hashimzade and Gareth Myles.