Final answer:
Economics is the study of how humans make decisions in the face of scarcity and allocate their limited resources to fulfill their wants and needs. It is a social science that examines various aspects of human life and behavior. Examples of economics in action include the adjustment of prices based on the scarcity of supply and the demand from consumers.
Step-by-step explanation:
Economics is the study of how humans make decisions in the face of scarcity. It explores how individuals, families, businesses, and societies allocate their limited resources to fulfill their unlimited wants and needs. Scarcity refers to the condition where human desires for goods, services, and resources surpass what is available.
For example, let's say there is an increase in the demand for a popular video game console. As a result, the price of the console might rise because the supply of consoles is limited, and people are willing to pay more to acquire it. This is an example of economics in action, as the price of the console adjusts based on the scarcity of supply and the demand from consumers.
In summary, economics is the study of how humans navigate scarcity by making decisions regarding the allocation of resources to meet their needs and wants. It is a social science that examines various aspects of human life and behavior, ranging from family dynamics to job creation.