What is the basic economic problem?

The basic economic problem is SCARCITY.
Our needs and wants are unlimited while our resources are limited.
This forces people and societies to make choices.
Today we studied some of the ways that people make choices, such as listing the costs and benefits or using a decision making grid.

Decision-making takes energy - having too many choices is tiring and may lead to poorer decision-making after a while.

Game theory illustrates that your decision-making often must take into account what you think others are choosing as well!

Here are some videos to illustrate:
Should Jerry steal cable or not? Cost benefit analysis.
Scarcity example