Final answer:
Economics is the study of how humans make decisions in the face of scarcity. It involves choices made in allocating limited resources. Scarcity is a key concept in economics.
Step-by-step explanation:
Economics is the study of how humans make decisions in the face of scarcity. These decisions can be individual, family, business, or societal. Scarcity means that 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 goods and services we want but they exist in limited supply. Choice is a central concept in economics as it examines the alternatives people have and the decisions they make in allocating scarce resources.