Economics is the social science that studies the production,distribution and Consumption of goods and services.Economics focuses on the behaviour and interactions of economic agents and how economics work. Definition of Economics The word economics has been derived from the Latin word "Oiko Nomos" which means household budget. This explains how the persons of a house manage to earn money and spend it. Later on this word was usedoing on state called "Polos". This explains that how the people of a state use to spend their lives and earn means of living. For thisome reasonso it was better called as "Political economy". However these two words were separated and become separate disciplines. The first one become political science and later one the subject of economics. Evolution of Economics The evolution of the definition of economics has passed through various stages. However it can be broadly classified into three scho