Seven Principles of Economic Thinking 3rd Period

Which statement explains scarcity?

• There's enough of everything for everybody
• As long as you have money, you can get anything you want.
• People always find more resources.
• People's wants are unlimited, but resources are limited.

An incentive is something that...

• you get from a junkyard
• you need when you open a bank account
• motivates you to do something
• you find on a spaceship

I only have an hour of free time today. If I study, I can't see my friends.

• Costs versus Benefits
• Scarcity Forces Tradeoffs
• Incentives Matter
• Future Consequences Count

I thought it was a good idea to get a dog. I didn't know it would drive my neighbors crazy.

• Costs versus Benefits
• Scarcity Forces Tradeoffs
• Incentives Matter
• Future Consequences Count
  

All that time at the gym is worth it. I'll look good this summer!

• Scarcity Forces Tradeoffs
• Incentives Matter
  
• Markets Coordinate Trade
• Thinking at the Margin

I already ate 5 slices of pizza. Should I eat one more?

• Scarcity Forces Tradeoffs
• Incentives Matter
• Markets Coordinate Trade
• Thinking at the Margin
  

Should I spend thousands of dollars on college? Would it be worth it?

• Markets Coordinate Trade
• Costs vs Benefits
  
• Trade Makes People Better Off 
• Thinking at the Margin

I want to sell my paintings. Maybe I'll post them on eBay.

• Costs vs Benefits
• Trade Makes People Better Off 
• Future Consequences Count
• Markets Coordinate Trade
  

 I don't know how to fix my car, but I can pay a mechanic to do it.

• Future Consequences Count
• Incentives Matter
• Markets Coordinate Trade
• Trade Makes People Better Off

I only have 20 dollars. If I spend it on a steak dinner, I can't buy gas for my car.

• Thinking at the Margin

• Costs vs Benefits

• Scarcity Forces Tradeoffs

• Future Consequences Count