Melva Bintang's Key Ideas from Basic Economics
by Thomas Sowell

An economy is a system for producing and distributing goods and services, but it only exists when there is scarcity and choices must be made regarding the use of limited resources.

Without scarcity, there is no need for economizing, and thus, no economics. In other words, economics studies the choices societies make regarding the use of scarce resources that have alternative uses.

Production is a fundamental aspect of economics that involves using scarce resources to create new output.

Efficient economies maximize output by minimizing waste and effectively utilizing scarce resources, ultimately determining a country's living standards.