Economic methodology and resource allocation fundamentals guide explores how societies manage scarcity choice and finite resources problem while examining opportunity cost and production possibility diagrams.
- Economic methodology focuses on understanding how scarce resources are distributed across competing societal needs
- The basic economic problem centers on balancing infinite wants against limited resources
- Production Possibility Curves (PPC) demonstrate the maximum output potential for two goods given available resources
- Economic efficiency concepts, both productive and allocative, are crucial for optimal resource utilization
- Different economic systems (free market vs command) offer varying approaches to resource allocation