WHAT IS ECONOMICS? Economics means different things to different people. To some it means making money in stocks, bonds, and real estate. To others it means understanding how to own and operate a business. To the president of the United States, it may mean developing a new federal budget or formulating plans to reform the welfare system. Although all of these matters are part of economics, the subject has broader dimensions. Economics is first and foremost the study of choice under conditions of scarcity. Both individually and as a society, we attempt to choose wisely. We are forced to do so because human and property resources are limited, and it takes resources to produce cell phones, computers, automobiles, CD players, and other goods and services that we desire.