Before we start this course, we must first look at the foundations of economics. We will basically discuss what the science of economics actually is and what the scope of this science might be.
• Economics is a social science on how to deal with scarcity.
• Scarcity is the problem of having infinite wants, or unlimited desires, while having only finite resources, or limited means, to fulfill these wants.
• A small scale example of scarcity: a person wants to buy a laptop and a phone, but has only enough money to buy one of the two.
• In general we describe this problem of scarcity as the economic problem.