Economics: “The study of how human beings use limited resources to satisfy unlimited wants”
Economics deals with scarcity.
Everything with an economic value = Scarce
“The study of how persons choose among alternatives to satisfy wants”
Wants/Needs > Resources
Unlimited Wants Limited resources scarcity Choice Opportunity cost
People have unlimited wants
However, resources are limited within the economy
This means that resources are scarce
Thus, people must make a choice between resources
Every choice has an opportunity cost associated with it
(Opportunity cost: the alternative/resource not chosen)