1. Chapter 1
Economic problem
The economic problem is a problem of the scarcity of the available resources essential for the satisfaction of human wants .
Scarcity : is a relationship between how much there is of something and how much of it is wanted .
Scarcity mean the interaction of unlimited wants with limited resources , has been called the economic problem .

2. Resources are scarce compared to all of the uses we have for them .
Scarce goods versus free goods :
Free goods would mean that you could have all you want of everything without having to give up something else you also want .
Choice :
Scarcity implies that choices must be made , and making choices implies the existence of costs .

3. Opportunity cost :
Is the value of the forgone alternative that you gave up when you got something .
The production possibilities frontier ( PPF ) :
It shows the maximum output that can be produced in an economy at any given moment , given the resources available .
If an economy is fully utilizing its resources then it will be producing on the PPF .
The PPF illustrates the concept of opportunity costs .

4. An outward shift of the frontier might be due to :
More training of employees .
Greater investment in capital goods .
An increase in the population size .
Improvements in technology .