Basic Concepts of Economics Definition of Economics • Study of how societies use scarce resources to produce valuable commodities and distribute them among different people with various needs • Study of how individuals within a society generally make choices that involve the use of scarce resources from among alternative wants that need to be satisfied • Scientific study of the choices made by individuals and societies in regard to the alternative uses of scarce resources which are employed to satisfy wants and needs Scarcity • The limited nature of society’s resource • An economic condition wherein there is no enough resources to satisfy all the demands of the people Opportunity Costs • The value of the good or service foregone • The value of the next best choice that you give up when you make an economic/rational decision There ...
