01. Basic concepts of economics and allocation of resources

Scarcity and choice are the fundamental basis of economic analysis.

Scarcity, in economics, refers to the situation where the demand for a commodity exceeds its supply. All commodities, except for air and sunlight, are scarce in this sense. Scarcity does not imply that a resource is unattainable, but rather that the supply is insufficient to meet the demand. Resources such as land, buildings, machines, automobiles, televisions, furniture, etc. are examples of scarce commodities.