What is economics and how does it tie in to this chapter’s study of co

QUESTION

What is economics and how does it tie in to this chapter’s study of competition?

What will be an ideal response?

ANSWER

By definition, economics aims to understand and predict how people act as they try to fulfill their wants and needs. It assumes rational behavior in light of material constraints (i.e., money). Because resources are scarce, businesses and consumers compete for goods.