Introduction to Economics

• Every individual has some amount of only a few of the goods and services that he/she would like to use.
• Each individual can thus use their resources to fulfill her needs. 
• It goes without saying that no Individual has unlimited resources compared to their needs. 
• Needs always outpace our means. No matter how rich one is, the availability of resources is never enough to fulfill the needs.
• Scarcity of resources is inevitable and no one can escape from it. 
• Resources are not only scary, but they have various alternative uses as well.
• As a result, the individual is forced to make a choice between the different goods and services that are available.
• For example, if the family wants to have a bigger house, it may have to give up the idea of having a few more acres of arable land. If it wants more and better education for the children, it may have to give up some of the luxuries of life. The same is the case with all other individuals in society.
• Everyone faces scarcity of resources, and therefore, has to use the limited resources in the best possible way to fulfill her needs.
• It can have more of a good or service only by giving up some amounts of other goods or services.
• Due to scarcity of resources and the fact that resources have alternative uses, a problem of choice arises.
• It involves the problem of allocating scarce resources to alternative uses.
• Basic economic Problem is the problem of choice.
• Economics is henceforth, concerned with the study of the solution of economic problems in a manner that the individuals are able to maximize their gains at micro levels.
• Also, the gains of society as a whole is able to maximize its social welfare at macro level.