In a feudal economy, the lord tells people what to grow and how to sell it. The straightforward way is for a central authority to decide what to do. How are scarce resources allocated across an economy? The decisions around how to allocate these scarce resources to produce the best output is the central question of economics.Įconomics is not about making moral judgments about what choices are morally better than others, just as mathematics doesn't explain love. There has never been enough resources to satisfy everyone completely - tradeoffs must be made on an individual and societal level. What is economics? Economics is the study of the use of scarce resources that have alternative uses, and how to allocate these resources to maximize output. 1-Page Summary 1-Page Book Summary of Basic Economics
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