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Important Terms: Economics, Economics, Personal Finance, Economic Stability Economics Economics is the study of the production, distribution, and consumption of goods and services. It is a social science that is used to understand and analyze economic relationships between individuals, organizations, and governments. Economics Economics is the theory and practice of economics. It studies how economic systems work, how to improve them, and how to manage them. Personal Finance Personal finance is a branch of economics that deals with individual financial goals. It studies how to earn income, manage expenses, and save and invest money. Economic Stability Economic stability is the condition in which an economic system operates normally and predictably. It is achieved by managing inflation, unemployment, and other fluctuations in the economic system. Relationships Between Important Terms The terms economics, economics, personal finance, and economic stability are closely related. Economics is the subject matter of economics, and personal finance and economic stability are branches of economics.