Economics is the study of making choices. High school and college students everywhere are required to take economic courses to obtain a diploma. Why is economics so important? Economics is important because it provides a guide for students for real-world situations. Economics is divided into two subcategories: microeconomics, and macroeconomics. Microeconomics is the study of economics at a narrow level. For example, concentrating on how specific business functions are microeconomics. Studying the world economy is classified as Macroeconomics; its focus is on a much broader level. All students must understand the concept of scarcity. Scarcity is a condition that occurs because society has unlimited wants and needs yet the amount of resources is limited. Unlimited wants and needs are what motivate us to produce goods and services. We are never satisfied therefore we always have a want or need. On the other hand, our resources are limited. Resources are what we use to produce the goods that temporarily satisfy our want or need. In a nutshell, this means there are never enough resources to produce enough for everyone. Therefore some people must do without specific goods and services. Doing one specific task means that you must give up something else, and consequently, the study of economics is all about scarcity.
             Another term for resources is "factors of productions." Economists have divided the factors into four separate groups for our better understanding. These groups are land, labor, capital, and entrepreneurship. The four factors work together in the production process. Land provides the basic raw materials that become the good. Labor provides the actual human efforts that transform the material into a good. Capital is the tools used to produce a good. And most importantly the entrepreneur takes the risk of beginning the whole production process and bringing the other three resources together.
             Opportunity cost is what is given u...