What is the primary focus of economics as a social science?

Economics, as a social science, primarily focuses on how individuals and societies manage their scarce resources to meet their needs and wants. The essence of economics lies in understanding decision-making processes regarding the allocation of limited resources, which is inherent to every economic system.

This understanding encompasses a wide range of topics—including the behavior of consumers and producers, the functioning of markets, and the impact of economic policies. While concepts such as supply and demand play a vital role in economic theory, they are part of the broader investigation into resource allocation. Similarly, analyzing government policies and labor markets represents specific applications or facets of economic study, but they do not encompass the wider scope of how resources are utilized across all societies. Therefore, focusing on the use of limited resources provides a comprehensive framework through which to explore various economic phenomena.