What is Economics? : The study of the decisions that go into making, distributing, and using of good and services.. What is a free resource? : A resource or good that is not scarce, even when its price is zero.. What is scarcity: the condition of not being able to have all the goods and services one wants.. What is an example of a scarce resource: . What is opportunity costs: . What can economics also be defined as? : the study of how the country manages our resources.. What is an example of a free resource? : Air. Why does scarcity exist? : because human wants for goods and services exceed the quantity of goods and services that can be produced from all available resources. The first day of school is coming up. You want a new pair of shoes and a new jacket. Your parents tell you you can only choose one. You choose the new shoes. What is the opportunity cost: The new jacket