Economics is the social science that is concerned with employing society's resources in such a way as to achieve the maximum level of satisfaction of societal needs and wants. Five major divisions in the discipline provide a conceptual framework for studying economic processes and institutions.

Identification ▶11选5彩票官方下载

The five major divisions of economics are consumption, distribution, exchange, production and public finance.

Consumption ▶11选5彩票官方下载

Consumption is the branch of economics that is concerned with spending by households and firms on goods and services. Consumer spending is significant; it makes up two-thirds of the U.S. gross domestic product.

Distribution ▶11选5彩票官方下载

Distribution examines the allocation of the national income among various inputs, or factors of production. Distribution also can refer to the distribution of income among individuals and households.

Exchange ▶11选5彩票官方下载

Exchange refers to the buying and selling of goods and services, either through barter or the medium of money. In most economies, exchange occurs in a market, the medium that brings together consumers and producers.

Production ▶11选5彩票官方下载

Production involves combining inputs or factors, such as land, labor and capital, to produce goods and services. Economists use a production function to study the relationship between inputs and the goods and services produced.

Public Finance ▶11选5彩票官方下载

Governments are active participants in the economy. Public finance is the division of economics that studies taxation and expenditure by governments and the economic effects.