8. what is economics about? Why do people, businesses and gov. have to make economic choice?

A lot of economists have different definitions on economics. Among them is economics is the study of how society uses its scarce resources to produce goods and services. It is obvious that p have to make economic choices => understand such an issue => think of two below important factors.

Firstly, in doing any business activity, they need one or all economic resources including capital, human and natural ones. Natural resources are all things from natural world that serve as raw material input for production of goods and services. Human resources consist of all active population of a country. In other words, they are at the working age except disabled and handicapped pp. capital resources are people who put everything together to make goods and services. We should understand that these resources are limited but the demand of pp is unlimited.

Secondly, our demand which is unlimited consists of needs and wants. When satisfying a demand, others will immediately appear. So we have to make choices. Whenever make an economic choice, there is an opportunity cost to us in terms of what we have to give up or trade off in order to get whatever we select.

Conclusion