Microeconomics

Chapter 1 1.1. Scarcity, Choice, Opportunity Cost • The economic problem arises because the resources that we have available for the production of goods and services are limited, while our wants for goods and services are unlimited. • Definition of Economics: Economics is the study of how society decides what, how and for whom to produce • Wants are human desires for goods and services. Our wants are unlimited. • Needs are necessities, those things that are essential for survival,...