part 1

• Economics seeks to understand how choices are made.
• Economics is considered a social science as it seeks to study humans with empirical tools
• The Economic Problem is when human wants are unlimited; however, resources are scarce.
• The Economic Problem is the reason why individuals are forced to make choices
• Scarcity is the limited availability of a resource, good, or service
• Scarcity is when resource is scarce when quantity is limited relative to the demand for it.