MJ Industries

Economics is a fundamental social science that examines how individuals, businesses, and governments allocate scarce resources to meet unlimited wants and needs. The study of economics is vital for understanding the decisions that drive our world, from personal budgeting to global trade. By the end of an introductory economics course, students should be able to explain what economics is, summarize its basic concepts, and understand how these concepts impact everyday life and larger market dynamics. What is Economics? Economics is defined by the central problem of scarcity. Scarcity arises because resources—such as labor, land, and capital—are limited, while human wants are virtually limitless. This necessitates making choices about how to allocate resources most efficiently. A good analogy for understanding scarcity is personal budgeting. Just as individuals must decide how to spend their limited income, societies must decide how to use their finite resources to produce goods and servi...