Economics

Statement

Economics is a social science that studies how individuals and societies allocate scarce resources among the production of goods and services to satisfy unlimited wants.

Notes

Economics is a social science: it studies human behaviour — the choices of consumers, producers and governments — through systematic, evidence-based reasoning, as against the natural sciences, which study the physical world. Its starting point is scarcity: because limited resources cannot satisfy unlimited wants, allocation, and therefore choice, is unavoidable.