Almost every introductory economics textbook opens with an update on the standard description of economics as the study that analyzes the best distribution of limited resources among many goals. The term "limited resources" refers to resources that are precious and costly, rather than unlimited and free. This includes all potential inputs used in the production of goods and services. Economists divide resources into three categories: capital, labor, and land. In economic terms, efficient allocation refers to using the least expensive combination of these resources to generate a given quantity of a product or service. The concept of "alternative goals" emphasizes the truth that, due to the limited nature of products and services, decisions must be made between several options. This need for choice is why economics is often referred to as the "study of choice." John Maynard Keynes, a well-known British economist, defined economics simply as "a way of thinking." This description emphasizes how economists use simple models to handle the complex nature of real-world economic relationships. Given the huge amount of detail of these relationships, focusing mainly on the most relevant parts of any given issue enables economists to conduct useful comparisons. If the above conclusions are correct, economics is a significant topic of study. In our upcoming pieces, we hope to demonstrate the impact of economics.
