Economics is the social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.
Think of economics like a big supermarket. Everyone has a shopping list (their needs and wants), but there's only so much money in their wallet (scarce resources). So they have to decide what they really need or want most (making choices).
Scarcity: This refers to the basic economic problem - the gap between limited resources and theoretically limitless wants.
Supply and Demand: These are economic models that determine price in a market. Supply refers to how much of something producers are willing to produce while demand refers to how much consumers want.
Microeconomics: This is the study of individual units in an economy such as households or businesses.
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