A few questions will help in understanding it –

• Why do people work?

• Why are people unable to get all that they want?

• Why is an economy unable to produce everything it needs?

• People work to earn an income by which they can satisfy their wants.

• Wants are unlimited and income as the means is only limited.

• An economy has only limited resources, so limited quantity of goods and services can only be produced.

These questions and answers reveal that a choice has to be made between various patterns of satisfying wants. Economics helps us as households, entrepreneurs, businessmen and government, in finding out the principles that should govern our choice among all possible alternatives.....