Summary: Urban economics analyzes the economic activities in cities, focusing on spatial relations and location decisions of firms and residents. It examines the growth and decline of urban areas, the composition of the labor force, and the factors contributing to the economic support of cities. By considering the demographic traits of the population, industrial composition, and economic activities, urban economics seeks to understand the reasons for the existence of cities. It delves into the economic activities that facilitate the production, transfer, and distribution of goods and services within cities, benefiting both the city residents and those in the surrounding areas. Through an analytical framework centered around spatial relations, urban economics provides insights into various urban problems, such as housing markets, segregation, congestion, pollution, transportation systems, and local government finances.