The basic economic problem GapFill

Economics is regarded as   a commercial subjecta physical sciencea social sciencea critical subject because it explores society and   physicalscientifichumansocial behaviour. One of the most important assumptions in the study of economics is the   allocativerational ceteris paribusscarcity assumption. In economics a statement is said to be   normativepositivenegativecorrect when it is based on facts and when it can be tested and proved. When a statement is showing an opinion, it is called a   correctrationalpositivenormative statement. The basic economic problem in the study of economics is that of  allocationhow to producescarcitywhat to produce. This means that finite   outputsresourcesraw materialsgoods are competing with   fewinfinitegoodlimited needs and wants. Economic resources are either   plentynaturalrenewablescarce or non-renewable. Since economic resources are scarce, economic agents must make  irrational choiceschoicesopportunity costsdecisions.