Sunday, January 28, 2018

Scarcity, Choice and Economics

Economics is 

...not English Literature where you will read stories, novels and poems and be rewarded for fanciful imagination
...not Math where there is always one Right answer, all else being wrong.
...not Science whose rules are rigid and strong and the reactions therefore predictable, or explosive if unpredictable.

It is at best a condensation of aggregate human behavior with respect to decision making under constraints.

The constraints are tangible, and real, because resources (anything of value) is available in only limited supply. The scarcity necessitates choice-making, and Economics then is the effort to analyse the fundamentals of the process of making choices.


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