What is Economics?
•Scarcity – a basic human dilemma
–Limited resources vs. unlimited wants
–The human condition requires making choices
•Definitions of Economics
–Mankiw’s definition
•…is the study of how society manages its scarce resources
–Hedrick’s definition
•…is how society chooses to allocate its scarce resources among competing demands to improve human welfare
–Alternative definitions
•… what economists do.
•… is the study of choice.