View note sourcehttps://www.goldenstepsaba.com/resources/rbt-exam-study-guide Economics, at its core, is the stuindividuals, businesses, and governments make choices when faced with limited resources and unlimited wants. It explores how these choices impact production, distribution, and consumption of goods and services. Two main branches of economics are microeconomics, which focuses on individual markets and choices, and macroeconomics, which analyzes the economy as a whole. Key Concepts in Basic Economics: Scarcity: The fundamental economic problem where resources are limited while human wants are unlimited. This leads to trade-offs and choices. Supply and Demand: Supply refers to the amount of goods and services available, while demand is the desire for those goods and services. The interaction of supply and demand determines prices. Incentives: Factors that motivate people to take specific actions, such as earning a higher salary or providing a good product. Costs and Benefits: Evaluating the costs and potential benefits of making a particular choice. Opportunity Cost: The value of the next best alternative that is forgone when making a choice.