Final answer:
Economics is the study of decision-making by individuals and societies with regard to resource use and allocation amid scarcity. It examines the balance between limited resources and human wants, a concept that is foundational in understanding societal behaviors and choices.
Step-by-step explanation:
The study of how individuals and societies choose to use resources to satisfy their needs is known as economics. This field involves the analysis of decisions made at all levels, including individual, family, business, and societal contexts, in the face of limited resources, or scarcity. Economics explores how human wants for goods, services, and resources exceed what is available and how this scarcity requires careful decision-making. It encompasses the allocation of labor, tools, land, raw materials, and the ultimate scarce resource, time. Early sociology also incorporated the study of economics, showcasing the interconnectedness of different social sciences.