Some economists insist on defining economics as simply "the allocation of scarce resources".

Unfortunately, this definition implies that all we really need to concern ourselves with is the observation and the studey of the flow of natural resources, human energy, finished products, and the like.

If we were interested only in the "allocation" of resources, then all we need to do is to appoint a dictator over the marketplace, and allow him (or her) to "allocate" resources according to his or her whims.

Sadly, this is precisely the solution advocated even by many students and believers in the free market.

Of course, scarce resources do indeed concern us in all aspects of economic inquiry and study.

We are concerned with allocation, but before that we are concerned with discovery, control, production, and finally, consumption.

A more accurate and meaningful way to examine this subject of economics is not from the point of view of resources, but of persons.

Thus, the appropriate question is not "What happens to resources and finished goods in the market?", but rather "How do individuals act while engaged in the production and exchange of goods and services?".

Our concern then is not the mechanical mathematics of logistics, but as Ludwig von Mises describes it, the calculus of "human action" in the marketplace.