What is economics?
Economics as a subjest covers a wide range of issues, most of which tend to be topical and receive daily coverage in newspapers and on television and the Internet. Over time, economists have developed their own language of terms and concepts inorder to explain and, in many cases, evaluate these issues.
Economics is the study of how to allocate scarce resources inthe most effective way.
The central economic problem of scarcity, which arises from infinite wants and needs and finite resources.
The economic problem, sometimes called the fundamental economic problem, is one of the fundamental economic theories in the operation of any economy. It asserts that there us scarcity, that the finite resources are available are insufficient to satisfy all human wants. The problem then becomes how to determine what is to be produced and how the factors of production (such as capital and labour) are to be allocated. Economic revolves around method and possibilities of solving the economic problem.
In economics, scarcity is the problem of infinite human needs and wants, in a world of finite resources. In other words, society does not have any sufficient productive resources to fulfill those wants and needs. Alternatively, scarcity implies that not all of society's goals can be pursued at the same time.
