ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -INTRODUCTION. Economic choice can be defined as the behavior observed when individuals make choices solely based on subjective preferences.

Detailed explanation-2: -Scarcity, Choice, and Cost All choices mean that one alternative is selected over another. Selecting among alternatives involves three ideas central to economics: scarcity, choice, and opportunity cost.

Detailed explanation-3: -Economists assume that individuals make choices that seek to maximize the value of some objective, and that they define their objectives in terms of their own self-interest. Individuals maximize by deciding whether to do a little more or a little less of something.

Detailed explanation-4: -An economic problem means the problem of making choices occurs because of the scarcity of resources. It arises because people have unlimited wants, but the means to satisfy them are limited. The question of choice, as an individual, also applies to society as a whole.