1.1 Definition and Questions

MyEconLab Concept Video

Well, did you make the right decision? Is being in school the best use of your time? You’ll soon know how an economist answers this question—for it is an economic question. It arises from the fact that you want more than you can get. You want to be in school. But you also want the time to enjoy your favorite sports and ­movies, to travel, and to hang out with friends—time that right now you don’t have ­because you’ve got classes to attend and assignments due. Your time is scarce.

Scarcity

Our inability to satisfy all our wants is called scarcity. The ability of each of us to satisfy our wants is limited by the time we have, the incomes we earn, and the prices we pay for the things we buy. ...

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