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Economics is the common sense science of how and why people make the choices they do. As a science, economics always begins with the ______________ of _________.

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Final answer:

Economics starts with considering the concept of scarcity, which necessitates decision making at various levels in light of limited resources and time.

Step-by-step explanation:

In the field of economics, the study always begins with the concept of scarcity. Scarcity refers to the basic economic problem that arises when human wants for goods, services, and resources exceed what is available. Resources such as labor, tools, land, and raw materials are necessary to produce the desired goods and services, yet they exist in a limited supply. Furthermore, time can be considered as the ultimate scarce resource, as regardless of being rich or poor, everyone has only 24 hours in a day to earn income, relax, or rest.

This scarcity leads to the need for choices to be made. These choices can be made on individual, family, business, or societal levels. Therefore, economics is the study of how humans make these decisions in the face of scarcity.

Learn more about Concept of Scarcity

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