What is economics?
• Economics is the social science that studies the choices that individuals, businesses,
governments, and entire societies make as they cope with scarcity and the incentives
that influence and reconcile those choices.
• Average of all goods and services (not individuals)
• All economics questions arise because we want more than we can get: scarcity, choices,
incentive, opportunity cost
• Three big questions: what?, how?, for whom?
• A choice