The basic economic problem GapFill

Economics is regarded as   a commercial subjecta physical sciencea critical subjecta social science because it explores society and   humanphysicalsocialscientific behaviour. One of the most important assumptions in the study of economics is the   scarcityceteris paribusrational allocative assumption. In economics a statement is said to be   correctnegativepositivenormative 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   positiverationalcorrectnormative statement. The basic economic problem in the study of economics is that of  allocationhow to producescarcitywhat to produce. This means that finite   outputsgoodsresourcesraw materials are competing with   infinitelimitedfewgood needs and wants. Economic resources are either   scarcenaturalplentyrenewable or non-renewable. Since economic resources are scarce, economic agents must make  irrational choicesopportunity costschoicesdecisions.