This document defines economics as the study of how individuals and societies use scarce resources to satisfy unlimited wants. It explains that scarcity means resources are limited and cannot meet all wants and needs. Resources include natural resources, human resources like skills and labor, and capital resources which are manufactured goods used to produce other goods. Because resources are scarce, societies cannot produce enough to satisfy all wants and must make choices about what to produce that involve sacrifices of producing less of other goods. The entrepreneur combines resources to produce goods and services.

2. ECONOMICS
STUDY OF HOW INDIVIDUALS AND
SOCIETIES USE THEIR SCARCE
RESOURCES TO SATISFY THEIR
UNLIMITED WANTS

3. WHAT IS SCARCITY?
 LIMITED QUANTITY OF RESOURCES TO MEET UNLIMITED WANTS AND NEEDS
 EVERYTHING IS SCARCE BECAUSE OUR WANTS AND NEEDS EXCEED THE LIMITED
RESOURCES AVAILABLE

4. WANTS
 ITEMS THAT WE DESIRE BUT ARE NOT NECESSARY FOR SURVIVAL:
MOTOR CAR
TELEVISION

5. NEEDS
 ITEMS THAT ARE NECESSARY FOR SURVIVAL
FOOD
CLOTHING

6. RESOURCES
 NATURAL RESOURCES- FREE GIFTS OF NATURE
• HUMAN RESOURCES- SKILLS PEOPLE
HAVE THAT ARE USED TO PRODUCE
GOODS AND SERVICES

7. RESOURCES
CAPITAL RESOURCES- MANUFACTURED AIDS TO PRODUCTION
ENTREPRENEUR- INDIVIDUAL WHO COMBINE THE FEATURES OF PRODUCTION IN ORDER TO PRODUCE GOODS
AND SERVICES.

8. CHOICE
 SCARCITY OF RESOURCES GIVES RISE TO THE
FUNDAMENTAL PROBLEM OF CHOICE.
 BECAUSE THE SOCIETY CANNOT PRODUCE ENOUGH
GOODS AND SERCIVES TO SATISFY ALL THE WANTS
OF ITS PEOPLE
 A DECISION TO PRODUCE ONE GOOD REQUIRES A
DECISION TO PRODUCE LESS OF SOME OTHER
GOOD. THEREFORE CHOICES INVOLVE SACRIFICES

9. WRAPPING UP