ABSTRACT
Economics exist because choices have to be made; scarcity is one of the key concepts in economics. The nature of the choices differs according to the level at which decisions are made. As individuals we have limited time and money and therefore have to make choices about how we spend our limited incomes and how we allocate our limited time to various activities. At a collective level choices have to be made about how scarce resources should be employed to achieve varieties of different outputs. Economic principles can be used to explain and predict decisions at the individual level and to aid decision-making at the organisational level.
