Economics is the social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their unlimited wants.
Think of economics like a big game of "The Sims". You have limited resources (money, time) and you need to decide how best to use them (buying food, building a house, learning new skills).
Scarcity: This refers to the basic economic problem - the gap between limited resources and theoretically limitless wants.
Supply and Demand: These are economic models that determine price in a market. Supply refers to how much of something businesses offer for sale at each price level. Demand refers to how much consumers want to buy at each price level.
Macroeconomics: This is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole.
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