2006-12-18 04:50:58 · 5 answers · asked by Anonymous in Social Science ➔ Economics
Economics is the study of choices made by people faced with scarcity.
An item is scarce if there is not enough to satisfy all demand at a price of zero. The "at a price of zero" part is important. For example, when I go to the grocery store there is always milk available, but milk is still scarce since if it were free, there would not be enough of it to satisfy everyone who would want it. The price mechanism is what we use to allocate the scarce milk. Almost everything is scarce by the economic definition. You could argue that air and sunlight are not scarce, and any economic "bads" such as garbage are not scarce either.
2006-12-18 09:31:45 · answer #1 · answered by Ethan 2 · 0⤊ 0⤋
Economics is a way of thinking about choices.
It is the study of how to make the best choice in times of scarcity. Choices come up all the time and scarcity is everywhere.
Scarcity can be a limited quantity of anything, from money to resources to time. For example, I have only 10 minutes to spare. What will I do with that time? I can't do everything I like to do in 10 minutes. Ergo, I have to choose.
The best choice is the one which gives you the most value for the least amount of your scarce commodity. (We assume more value is better). How you value your commodity and the thing you're trading for is another story.
Peace
2006-12-18 07:50:13 · answer #2 · answered by zingis 6 · 0⤊ 0⤋
FWIW - I have real complaints with the dictionary definition Mike gave above (Yes, dictionaries do say Economics is the study of economies. That's like saying Mathematics is the study of mathematics).
Also with llikepie's answer, which is what textbooks give, but is too limiting.
My definition of Economics is the best. The world is free to use it. For $5 a reference.
Economics is the study of how human society organizes itself and manages the resources available to it to satisfy its needs.
2006-12-18 05:53:27 · answer #3 · answered by KevinStud99 6 · 0⤊ 0⤋
Social science - production, distribution, and consumption of goods and services + theory and management of economies or economic systems.
I am being economical with words in the above due to a scarcity of space................
2006-12-18 05:07:38 · answer #4 · answered by thomasrobinsonantonio 7 · 0⤊ 0⤋
economics is the study of the allocation of limited amounts of goods and services in a world that has unlimited wants.
scarcity is just something that is limited... just about everything is scarce...
2006-12-18 05:07:59 · answer #5 · answered by Ilikepie 2 · 0⤊ 0⤋