Economics is a social science that uses the scientific method to study how societies allocate scarce resources to satisfy unlimited wants. It has two main fields: microeconomics, which focuses on individual economic units like consumers and firms, and macroeconomics, which looks at aggregate outcomes for the whole economy like growth, employment and inflation. The key economic agents that interact in markets are consumers, who maximize utility; producers, who maximize profit; and the public sector, which aims to maximize social welfare.

1. Applied
Economics

2. What is Economics?
 According to Molina, J. A. & Nadal, G. J I (2020), economics is a SOCIAL
SCIENCE concerned with the explanation and prediction of observed
phenomena in the society. Economics studies the way in the societies solve
the fundamental problems of reconciling the unlimited desires of individuals
with scarcity of resources, susceptible to numerous alternative uses.
Economics is also an APPLIED SCIENCE because it uses the scientific method
in its explanations, which consists of observing reality and presenting
questions and problems to arrive at the formulation of theories and models.
As an applied science, it follows a systematic procedure to solve issues and
problems of the society.

3. The Fields of Economics
*Microeconomics: focuses on the behavior of individual economic units
and the functioning of markets. Its perspective focuses on parts of the
economy: individuals, firms, and industries.
*Macroeconomics: studies the functioning of economics as an
aggregate (production, employment). Its perspective looks at the
economy as a whole, focusing on goals like production, the standard of
living, unemployment and inflation. Macroeconomics has two types of
policies for pursuing these goals: monetary policy and fiscal policy.

5. The Economic Agents/Stakeholders:
1. Consumers
• Consume goods and services /offer production factors
• Maximize utility
2. Producers
• Produce goods / demand productive factors
• Maximize profit
3. The public sectors
• Attempt to maximize the well-being of society
*The agents interact among themselves in a specific territorial, social, natural and/or cultural
framework that determines their relationships → Market