Economics is about people and the choices they make. More specifically, economics is the study of how individuals and society choose to use limited resources in an effort to satisfy unlimited wants. Scarcity, the problem of limited resources and unlimited wants, is the most basic economic problem. Because of the problem of scarcity, nations, businesses, and individuals must make difficult choices in an effort to satisfy unlimited wants with limited resources.
Economic goods are things of value that can be seen, touched, and shown to others.
Economic services are intangible things that have value but often cannot be seen, touched, or shown to others. An important fourth factor of productions is entrepreneurship. These factors of production are needed to produce goods and services. There are three basic economic questions that every nation of the world must answer. There are basically three kinds of economic systems in the world.