Economics is a science of choice. Every economy is faced with this basic problem. This has been reflected in the definition given by Prof. Lionel Robbins in his book, “An Essay on the Nature and Significance of Economic Science”. According to Robbins economics studies human wants and scarce means, which have alternative uses. Scarcity of means in relation to unlimited wants leads to the problem of making a choice. Hence, the problem of choice is the central problem of an economy.
