Law and Economics, or economic analysis of law, is an approach to legal theory Law is a system of rules, usually enforced through a set of institutions. It shapes politics, economics and society in numerous ways and serves as a primary social mediator of relations between people. Contract law regulates everything from buying a bus ticket to trading on derivatives markets. Property law defines rights and obligations related that applies methods of economics Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)". Current economic to law. It includes the use of economic concepts to explain the effects of laws, to assess which legal rules are economically efficient Economic efficiency is used to refer to a number of related concepts. It is the using of resources in such a way as to maximize the production of goods and services. A system can be called economically efficient if:, and to predict which legal rules will be promulgated Promulgation or enactment is the act of formally proclaiming or declaring a new statutory or administrative law as in effect after it receives final approval.[1]

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