1. Resources influence choices

There are only so many resources that you have available. Can you access $1 million right now? Can you call a chauffeur to drive you around in a new Bentley convertible? Can you write a 20-page paper in 20 minutes?


People are stuck with the resources that are available to them personally. Some people have a ton more resources than most, but nobody has it all. Everybody could benefit from more time, more talent, more money.

This is the problem of scarcity. Scarcity doesn't just apply to situations like natural disasters where all the local stores are out of water and generators. Even rich families and rich nations have scarcity. There is never enough of anything to satisfy everybody.

Economics exists as a science to try and best solve the problem of scarcity. How can we help the most number of people get their needs met- the things they really need to live everyday, and then as a bonus how many of people's wants can we help satisfy? The things they don't really need but would like to have.