Answer to Question #12248 in Economics of Enterprise for Jasmine
How does the study of economics depend on the phenomenon of scarcity?
Economics explains how people make choices under the conditions of scarcity. Scarcity just means limited, the easiest way to know if something is scarce is whether or not is has a price. if it has a price, even if you aren't the one who has to pay it, then it is scarce. Economics is all about understanding why people would choose one scarce thing over another scarce thing (why would you pay to have someone maintain your lawn and change the oil in your car, money is a scarce resource and you must choose how to spend your money). So economics is the study of how society manages its scarce resources therefore, the study of economics is only important because of the scarcity of resources