- Economics is the study of how individuals, businesses, and governments make choices with limited resources due to scarcity. - People must choose how to spend their limited incomes between needs like food and shelter or wants. Businesses must decide what and how much to produce with limited profits. Governments face limits in resources and must allocate tax revenue. - Opportunity cost is the best alternative given up when a choice is made. For individuals it could be leisure time, for businesses profits, and for governments spending on other programs.

1. Economics 101 Unit 4 Notes