Economics is a study of scarcity because it deals with the allocation of limited resources to fulfill unlimited wants of individuals and society. In other words, it is the study of how individuals and societies make choices in a world of scarcity.

Scarcity

Scarcity is the basic problem of economics. It means that there are limited resources to fulfill unlimited wants. Resources are scarce in the sense that they are limited and cannot satisfy all the wants of individuals and society.

Allocation

Allocation refers to the distribution of limited resources among different alternative uses. In economics, the allocation of resources is determined by the forces of supply and demand. The market mechanism plays a vital role in determining the allocation of resources.

Choice

Choice is the act of selecting one option from a set of alternatives. In economics, individuals and societies have to make choices because of the scarcity of resources. Choices have to be made about what goods and services to produce, how to produce them and for whom to produce them.

Opportunity cost

Opportunity cost is the cost of giving up one option for another. In economics, opportunity cost is the cost of choosing one option over another. It is the value of the next best alternative that is foregone.

Conclusion

In conclusion, economics is a study of scarcity because it deals with the allocation of limited resources to fulfill unlimited wants. Scarcity is the basic problem of economics, and it leads to the need for allocation and choice. Opportunity cost is the cost of giving up one option for another. Economics provides a framework for analyzing and understanding how individuals and societies make choices in a world of scarcity.

Hi Shana,
first of all scarcity: it means a condition in which u r having limited resources in comparison of your wants and economics is the study of how humans make decision in scarcity.
For e.g. Suppose u have 5rupees and u want to purchase chocolate, toffee, biscuit,etc but u r having limited resource i.e. only 5 rupees now u have to take decision that which thing satisfy u more .