Economics is the study of how individuals and societies allocate resources from "summary" of Basic Economics by Thomas Sowell
The fundamental task of economics is to study how resources are allocated in society. This encompasses the decisions made by individuals, businesses, and governments on what to produce, how to produce, and for whom to produce. Resources are limited while human wants are unlimited. This gives rise to the problem of scarcity, which requires choices to be made regarding how resources are used. Individuals make decisions based on their preferences and constraints. They weigh the benefits and costs of different options when making choices. These choices are influenced by factors such as price, income, and personal preferences. Businesses also make decisions based on maximizing profits. They allocate resources to produce goods and services that will ...
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