Fundamental principles of economics

The fundamental principles of economics revolve around how people and societies make choices to allocate limited resources—like time, money, and goods—to meet their needs and wants. It recognizes that resources are scarce, so individuals and governments must decide the best use of them. Prices act as signals to balance supply and demand, encouraging efficiency. Additionally, economic decisions involve trade-offs, meaning gaining something often means giving up something else. These principles help explain everything from personal finance to global markets, guiding us to optimize resource use for overall well-being.