Economics is a type of social science by which the question of how to cope with unlimited human wants and needs in a world of limited resources or factors of production (known as scarcity) is analyzed and evaluated. On one side, humans have needs that enable their survival, but imagine the infinite goods and services they want have if there were no restrictions. On the other side, we have one Earth, so our productive inputs are naturally finite. Because of this, we have to make choices, big and small. Economics thus studies choice.
Furthermore, economics deals with how productive factors are rationed, or distributed, within an economy. The three basic questions of the economic problem are:
1. What to produce?
2. How to produce?
3. For whom to produce?
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