Economic — Introduction to the Economic Problem + 4 more topics

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Economics essentially boils down to three big questions:
1. What to produce? (What goods and services?)
2. How to produce it? (What resources and methods?)
3. For whom to produce it? (Who gets the goods and services?)

These questions arise because of scarcity – the fundamental problem that human wants for goods, services, and resources exceed what's available. Scarcity forces us to make choices, and every choice comes with an opportunity cost – the value of the next best alternative that you gave up.

Because our wants are unlimited and our resources are limited, scarcity is unavoidable. Scarcity forces us to make choices. Every choice means giving up something else.

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