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Economics is the study of the use of economic resources in the marketplace. Free market economies often rely on this information to gauge current economic conditions. Economic analysis is a primary tool used to evaluate a nation & rsquo;s economy. Economic analysis is commonly defined as a systematic approach to determining the optimum use of scarce or limited economic resources. The analysis often includes several assumptions or constraints found in the economic marketplace.

Economics is the study of how resources are used as well as an analysis of the decisions made in allocating resources and distributing goods and services.