This text is based on the macroeconomics course offered by Dr. Daniel Underwood at Peninsula College. Peninsula College is part of the Washington State Community College system.
Economics is the study of resource allocation. The primary goal of the study of economics is to be able to do more with limited resources. Economics is usually studied in relation to money, and how money should be allocated in order to produce more money. But, it is important to realize that economic theory and analytical methods may be, and are, applied to all resources such as time, labor, minerals, water, and air.
Because of its vast size, the complex interrelation of its processes, and the often illogical decisions made by the people in an economy, it is very difficult for economics to be an exact or predictive science. Often economic reasoning has a political agenda more closely linked to someone's ideology than to the analysis of reality. Because of these factors, economists (and all scientists) must be extremely rigorous with the definitions and assumptions upon which they base their reasoning.