Scarcity is one of the most important concepts to economics. If resources are not scarce, there is no need to choose among alternatives. In a capitalist economy, when commodities and resources are scarce, the market distributes them in a way that is determined by the price system.
Review scarcity in the market in this video: Economic Problem: Scarce Resources.
As you review your study of microeconomics, you need to be sure you have mastered some important concepts from calculus, such as graphs, variables, and constants. Economists use the scientific method in most economic analysis. Specifically, they examine the marginal benefits and marginal costs of a decision to determine the optimal choice for an individual or company.
Review data representation and mathematics for economics in the following resources.
Economists have created some basic models to illustrate how people deal with scarcity: such as through specialization, trade, and the circular flow of resources. Individuals and societies specialize in certain products or activities to maximize productivity, to focus on the activities they are most productive in. Trade describes the way individuals and societies exchange goods and services, according to their needs, according to their specialization.
Think about the things or skills you personally specialize in and trade with others. For example, do you work in a certain profession because you have skills or talents your employer needs and is willing to pay you to perform? Do you use the income you earn from this specialization to buy goods and services you need from others?