What is the fundamental essence of economics? This question provokes deep thought. Essentially, economics is a discipline that studies human nature and aims to improve the efficiency of societal operations through the design of rules.

The cornerstone of economics is built on two key elements: humanity's unlimited desires and the scarcity of resources in the real world. This contradiction forms the first principle of economics. In short, we live in a world of limited resources, yet we possess endless desires.

This fundamental contradiction is the origin of all economic activities and the fundamental reason for the existence of economics. If resources were inexhaustible and human beings were completely devoid of desires, then core concepts in economics such as choice, cost, efficiency, trade, and growth would lose their meaning, and this discipline would cease to exist.

'Scarcity' is not a complex theory, but a fundamental fact of our living environment. Whether it is time, energy, natural resources, high-quality medical services, or even the attention to read this text at this moment, all are scarce.

At the same time, human desires seem to be endless. We crave a healthier body, richer experiences, broader knowledge, deeper interpersonal relationships, and so on. This contradiction between the limited and the infinite forms the core of economic research.

Once we establish the foundation of 'scarcity', the entire economic system can be built through logical deduction. Scarcity inevitably leads to the emergence of choices, as we cannot satisfy all demands simultaneously and must make trade-offs among various possibilities.

Understanding this fundamental principle helps us better grasp the essence of economics and make wiser decisions in our daily lives. In a world of limited resources, how to balance desires and constraints, and how to maximize the use of limited resources are core questions that economics seeks to answer.