Introduction to economics

Economics

Social science which studies how the worlds scarce resources are allocated to competing uses to satisfy societys wants and needs

Social science

Study of society and people and how they interact with each other

Need

Something people have to have something they cannot live without

Want 

Something people would like to have but which is not essential for survival 

Scarce

Means there is not enough of something

Scarcity

Means that our wants and needs are greater than the amount of available resources

This is because resources and raw materials are needed to produce these goods and services but they are in limited supply

Economic problems 

Unlimited wants 

Scarce resources 

Resource use 

Choices 

Opportunity cost

Cost expressed in terms of the next best alternative sacrificed

Helps us view the true cost of decision making

Implies valuing different choices