ECS 1501 ASSIGNMENT 1

1.1Economics is _______ [1] a study of the ethics of making money. [2] the study of how scarce resources are allocated in an attempt to satisfy unlimited wants. [3] the study of direct and indirect relationships between inputs and outputs in various production methods. [4] a sub discipline of business management. Economics cannot be defined as the study of money. It is concerned with the economic choices and decisions made by businesses, government and individuals. Economics is the study of how scarce resources are allocated to satisfy wants. Because businesses, individuals and government have unlimited wants, whereas resources are limited, we have to make choices on how to use the scarce resources to satisfy unlimited wants. Economics is the study of the use of scarce resources to satisfy unlimited human wants. Richard Lipsey PAGE 3 PRESCRIBED TEXTBOOK 1.2 Scarcity requires households to [1] cooperate. [2] compete. [3] trade. [4] make choices.