Explain the concepts of scarcity and opportunity cost and how they relate to the definition of economics.

DEFINING ECONOMICS

L E A R N I N G O B J E C T I V E S

1. Define economics.

2. Explain the concepts of scarcity and opportunity cost and how they relate to the definition of economics.

3. Understand the three fundamental economic questions: What should be produced? How should goods and services be produced? For whom should goods and services be produced?