Thinking Like an Economist Review

What is the study of how people make decisions based on their unlimited wants and limited resources called?

• Sociology

• Psychology

• Economics

• Anthropology

What concept is economics based on?

• Abundance

• Scarcity

• Equality

• Diversity

What does economics observe about people?

• How people make choices and organize data

• How people interact socially

• How people express emotions

• How people develop language skills

What is the fundamental economic problem facing all societies?

• Inflation

• Unemployment

• Scarcity

• Surplus

What is scarcity?

• When resources are more than what is needed to meet human wants

• When resources are equal to what is needed to meet human wants

• When resources are less than what is needed to meet human wants

• When resources are irrelevant to human wants

Who does scarcity affect?

• Only individuals

• Only businesses

• Only governments

• Individuals, businesses, governments, and societies

Is scarcity a temporary or ongoing situation?

• Temporary

• Ongoing

• Rare

• Uncommon

What is scarcity caused by?

• A shortage of money

• A shortage of resources

• An abundance of resources

• An abundance of money

What is NOT a cause of scarcity?

• A shortage of money

• A shortage of resources

• Limited consumer choices

• High demand

Why must choices constantly be made according to the concept of choice?

• Because resources are abundant

• Because wants are unlimited and always changing

• Because producers have fixed needs

• Because consumers have limited desires