The basic concepts of economics are explained below:

• Wants: These are the desires or needs that people have for goods and services that can satisfy their preferences and improve their well-being.
• Scarcity: This is the condition where the available resources are not enough to produce all the goods and services that people want. Scarcity forces people to make choices among the alternatives.
• Choice: This is the act of selecting one option from a set of possible alternatives, based on the criteria of rationality, preferences, and constraints. Choice involves comparing the benefits and costs of each option and choosing the one that maximizes the net benefit.
• Opportunity cost: This is the value of the next best alternative that is forgone as a result of making a choice. Opportunity cost measures the trade-off between the chosen option and the foregone option.