Scarcity and Choice: The Economic Problem

"You cant't always get what you want" Mike Joeger

Had there been enough for everyone, there would have been no reason to allocate resources. Scarcity is absent. But since resources are scarce, economizing is imperative. It is because of the presence of scarcity that a profit maximizing individual needs to make rational choices. The entire science talking about allocation of scarce resources defines what is being covered in Economics.

Terms to understand

1. scarcity

2.choice

3.rational decision

4.opportunity cost

5.inputs

6.outputs

7.production possibility frontier

8.principle of increasing costs

9.economic growth

10.three coordination tasks

11.capital goods

If you have browsed every hyperlink and read, you will have by this time some vague ideas about scarcity and the need for making choices. Put your questions on the comment link so that I can incorporate them on our class lectures. Have a good reading.

Also read the link http://www.ingrimayne.com/econ/Introduction/ScarcityNChoice.html

Also the link http://www.ingrimayne.com/econ/Introduction/Utopias.html