Basics Concept of Economics

Basic concept of economics:

1. Wants: wants is desire to own goods and services that give satisfaction. Wants are unlimited while the means are limited.

2. Choice: Choice refers to the ability of a consumer or producer to decide which good, service or resource to purchase or provide from a range of possible alternatives.

3. Scarcity: Scarcity is the limited availability of a commodity , which may be in demand in the market or by the commons. Scarcity may also means an individual's lack of resources to buy commodities.

4. Scale of Preference: Scale of preference refers to a list of unsatisfied wants arranged in order of their relative importance.

5. Opportunity Cost: Opportunity cost is the value of the next best alternative forgone as a result of making a decision.