There are three key princliples integrated in the defintion of economics (how resource allocation occurs). These include: Resouces are scarce or finite, resources can be used for multiple reasons, and each person has different preferences, wants, and needs. Resources are expensive, resources can be used for multiple reasons, and each person has different preferences, wants, and needs. Resources are scarce or finite, resources can be used for multiple reasons, and individual preferences are less important than population needs. Resources are infinitely renewable, resources can be used for multiple reasons, and each person has different preferences, wants, and needs