There is a limit to the amount of goods and services which can be produced.

The economic resources which are needed to produce goods and services are limited in supply.

Technical progress enables us to produce more of the things people want, but our wants always grow faster.

The basic problem of economics is that economic resources are limited in supply but people's wants seem to be unlimited.

Wants remain unsatisfied because our wants are not limited.

Wants are always growing and changing.

Technical progress continues to produce more interesting and attractive ways of satisfying our wants.

Economists definition of scarcity: 'There is not enough of it to completely satisfy everyone's wants'.

Scarcity exists in all countries.

People want more goods and services than they can obtain.

Economics is about making the most of what we have (economising).

Individual: using one's abilities and spending one's income in the way thay gives the most benefit.

Community: using the people's skills and energies, the land, the buildings, the machinery and the other economic resources to obtain the highest standard of living.

Economists talk and write about:

• Money
• Prices
• Wages
• Employment
• Taxes
• Exports
• Imports
• Earning
• Spending.

Economics is part of our everyday life:

• We live in an economic system.
• Every day we take part in economic activities.
• We are familiar with the words used by economists.