them. Faced with scarcity, we must make choices—we must choose among the available alternatives. The choices we make depend on the incentives we face. © 2011 Pearson Education 1 1.1 DEFINITION AND QUESTIONS 1.1 DEFINITION AND QUESTIONS Economics Defined Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity, the incentives that influence those choices, and the arrangements that coordinate…
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