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Simply put, individuals choose how they will best utilize resources based upon increase or decline in profit or as it relates to scarcity. Scarcity is "the fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like" (Economics Private & Public Choice, 11th edition, page 6). The textbook speaks of "The Economic Way of Thinking", and this way of thinking is all about how incentives alter the choices people make (page 3). Human ingenuity demonstrates economic prosperity.
Human Ingenuity, the first key, states that economic goods are the result of human ingenuity and action; thus, the size of the ?economic pie" is variable, not fixed...
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Common topics in this essay:
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