economic is a science of scarcity and choice ? explain 40-60words
Answers
Answer:
The basic economic problem is that needs and wants are unlimited, but resources are scarce. ... Scarcity means that resources are limited, and because resources are scarce, people must make choices. Economics is the social science that studies how people use scarce resources to satisfy unlimited needs and wants.
Explanation:
Let's talk about the basic foundation of economics - what economics is, what's involved with it, and what the basic economic problem is. The word economy comes from two Greek words, one meaning house and the other meaning distribute. It was first used to describe the management of a household, but by the mid-1700s, it came to describe the management of the resources of a country.
The basic economic problem that we're concerned about is this: Needs and wants are unlimited, but resources are scarce. What are resources? Resources are otherwise known as the factors of production and they include land, labor, capital and entrepreneurship - everything it takes to produce the stuff that you and I buy on a regular basis in our economy.