Economics is concerned with the allocation of scarce resources. The amount of resources (labour, materials, natural resources, etc) available to a society can be considered as fixed at a given moment of time. This means that choices have to be made concerning how to use these resources, e.g. the amount of education that is provided can only be increased if the production of some other goods is decreased.
KeywordsMarket Failure Demand Curve Marginal Rate Social Welfare Function Pareto Principle
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