Economics is the study of scarcity and the consequences of scarcity. Individuals, households, businesses and nations all experience some level of scarcity, in that they do not possess all the resources to satisfy all their wants and needs. Decisions have to be made to balance those scarce resources in order to improve what can be achieved with them.
Individuals have to decide how to spend their income, household budgets have to be managed, business need to deploy their resources in order to ensure their profitability and governments need to consider the best possible balance of spending to meet the needs of competing groups within society.
Economics is concerned with how these decision are made, with how the resources of a nation or a business are allocated and utilised in the production of goods and services, and with how the rewards of these activities are distributed.