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Economics Is Often Described as a Science of Constrained Choice

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Essay

Economics is often described as a science of constrained choice. How do you justify this argument?


Definitions:

Pay-As-You-Go Principle

A financing method where expenditures are not financed by borrowing but from current revenues.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, banking supervision, and financial services.

Personal Savings

Money that individuals set aside from their income, after consumption and taxation, for future use or investment.

Demographic Conditions

The statistical characteristics of populations, such as age, race, gender, and income, which affect consumer behavior and economic trends.

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