The paper examines core economic principles and real-world applications. Section A focuses on microeconomic and macroeconomic concepts, including demand and supply shifts, inflation, income distribution, labor market dynamics, Phillips curves, and government budget balances. Key topics include market failures, monetary policy, price elasticity, and comparative advantage in international trade. Section B investigates Sri Lanka’s economic performance, addressing its development relative to regional peers, fluctuations in global tea prices, and fiscal policy challenges in managing national debt. The paper emphasizes analytical reasoning and policy evaluation, integrating theoretical frameworks with empirical data to assess economic decisions and outcomes.