Function=Economics is the social science that examines the ways in which individuals and entire societies allocate scarce resources to meet their needs and wants. Resources are by nature limited. People do not have the time, money or materials to do or acquire all of the things they need and want. This means individuals, families, companies and entire nations have to prioritize their needs and wants, deploying their available resources accordingly.Benefits=Harvard economist Gregory Mankiw, a former White House economic adviser, points out that studying economics prepares you to be a more knowledgeable and informed participant in the modern economy. A basic understanding of economics can make you a smarter consumer, worker and investor. In addition, Mankiw observes that studying economics provides a knowledge base for understanding government actions and world events