1.1.2—Economic choice

Economic choice is the decision about which scarce resource use to pursue. Every choice selects one option and leaves at least one alternative less funded or forgone.

Individuals choose consumption or saving, firms choose products and methods, and governments choose public priorities. The best decision depends on objectives, constraints and expected consequences.

A firm can use a factory line for bicycles or electric scooters; producing more of one leaves less capacity for the other.

Choice is not limited to buying goods: deciding not to act, to save or to regulate is also an allocation decision.