Economics

• Microeconomics is the study of how to best solve the basic economic problem of allocating scarce resources given unlimited wants.
• Resources in economics, also known as factors of production, include capital, enterprise, land, and labor.
• The three fundamental choices in allocating scarce resources are what to produce, how to produce it, and for whom to produce.
• Opportunity cost is the cost of the next best alternative foregone when a choice is made, and it is used to measure the value of choices in economics.