The Economic Perspective. Chapter 1. Economics. What is economics? Studies the allocation of limited resources in response to unlimited wants Choice Choices are caused by Scarcity Scarcity – a situation in which there are too few resources to meet all human wants. Scarcity.
All resources are scarce
Scarce resources lead to scarce goods, whether or not money is involved
Resource allocation refers to the uses which we place on resources
Allocation depends partly upon technologyResource Allocation