Economics: The Scientific Study of Rational Choice
Imagine you’re in a restaurant and the server has just handed you the menu. You are preparing to make a choice. You have entered the realm of economics. At its most fundamental, economics is about choice. We may define economics as the scientific study of rational choice. Although that assumption of rationality has recently come under some attack, it remains a good working assumption. We make choices and consider trade-offs as we strive to achieve the best outcomes possible in our own self-interest. Individually and as a society, we must make choices because, although we have unlimited wants, we have limited (scarce) resources to meet those wants.
In economics, an item is considered ...