Back to Basics: What is Economics About?

The study of economics revolves around two premises. The first is that man has unlimited wants and needs. Each individual strives to obtain more for themselves and those he cares for. Even the most hermit-like of us must feed himself if he wishes to live. The second premise is that each individual, at any given time, has a limited amount of resources at his disposal. There are four kinds of resource. Three of them, time, labor and talent, are inherent in the individual while the forth, capital, consists of external goods that must be obtained through the use of the first three. As one cannot fulfill unlimited wants with limited resources, one must decide how to best use the resources available to obtain the things that are valued most. Economics is the study of those choices.