ually as profit driven entities.Economics is the study of how best to allocate scarce resources among competing uses (The Micro Economy TodayBradley R. Schiller). Economics is concerned with the production and use of goods and services. There are economic aspects to nearly all the problems of society. To satisfy its members, an economic system is expected to provide goods and services and to provide employment, security, equality of opportunity, equity, and progressiveness (Basic EconomicsRichard S. Eckaus). Eckaus went on to say that it must operate within three types of constraints: 1.The limits of technical knowledge2.The limits of the productive resources available3.The patterns of organization, behavior, and law impose by social custom and more.All these constraints can and do change overtime, but at any one time they set limits on the operation of the economy (Professor Kristjanson).The ability of an economy to satisfy the gals of its members within the limitations set by these constraints depends on its efficiency. Efficiency implies not only the absence of waste but also organizing and using the available resources effectively (Basic EconomicsRichard S, Eckaus). Before I mentioned efficiency, I should have first talk about scarcity, since the existence of constraints on the economy, is in one hand, and unlimited human wants is in the other, and efficiency is a solution mixture of both. Scarcity, in turn, creates the necessity of making choices among alternatives. The study of the manner in which choices are made is one of the central themes of economics (Basic EconomicsRichard S. Eckaus). Three fundamental kinds of questions must be resolved by an economy:1.What goods will be produced and in what amounts?2.How will goods be produced and in what amounts?3.Who gets how much of the goods produced?From an economist's perspective between play by children and play by adults rest on the magnitude of incentives and cost (The Economics o...
