The basic economic problem GapFill

Economics is regarded as   a social sciencea critical subjecta commercial subjecta physical science because it explores society and   physicalsocialhumanscientific behaviour. One of the most important assumptions in the study of economics is the   allocativeceteris paribusrational scarcity assumption. In economics a statement is said to be   negativecorrectnormativepositive 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   positivecorrectnormativerational statement. The basic economic problem in the study of economics is that of  allocationwhat to producescarcityhow to produce. This means that finite   goodsraw materialsoutputsresources are competing with   infinitefewgoodlimited needs and wants. Economic resources are either   scarceplentyrenewablenatural or non-renewable. Since economic resources are scarce, economic agents must make  irrational choicesdecisionschoicesopportunity costs.