Hello,

According to celebrated economist Adam Smith economics is "an inquiry into the nature and causes of the wealth of nations.”  In simple terms it is a subject which is concerned with the production, distribution, and consumption of goods and services i.e. allocation and utilization of money and resources.

Economic problems arise as the resources in a society or nation is finite and often fails to fulfil the wants and need of all. E.g. at present India is experiencing slow growth rate as a there are not enough jobs in market , as a result less income and less expenditure. People at large are unable to take care of their expenses and needs .

Hope it helps