Thinking Like an Economist Review

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

• Psychology
• Sociology
• Anthropology
• Economics

What concept is economics based on?

• Abundance
• Scarcity
• Equality
• Diversity

What does economics observe about people?

• How people develop language skills
• How people make choices and organize data
• How people express emotions
• How people interact socially

What is the fundamental economic problem facing all societies?

• Inflation
• Unemployment
• Surplus
• Scarcity

What is scarcity?

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

Who does scarcity affect?

• Only individuals
• Only businesses
• Only governments
• Individuals, businesses, governments, and societies

Is scarcity a temporary or ongoing situation?

• Uncommon
• Temporary
• Ongoing
• Rare

What is scarcity caused by?

• A shortage of resources
• An abundance of resources
• An abundance of money
• A shortage of money

What is NOT a cause of scarcity?

• A shortage of resources
• High demand
• Limited consumer choices
• A shortage of money

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

• Because consumers have limited desires
• Because producers have fixed needs
• Because resources are abundant
• Because wants are unlimited and always changing