They try to get the most from their limited resources people do not deliberately waste valuable resources because these resources could increase their utility (benefit from a choice) 3 incentives matter – choice is influenced in a predictable way by change in economic incentives the decisions people make will change with
A way of thinking about people's choices from among scarce resources-This chapter introduces that way of thinkingThe economic way of thinking includes A) more attention paid to benefits rather than the costs involved in any choice B) the assumption that individuals choose to maximize some objective C) emphasis on how choices affect total values rather than marginal values D) the notion that the world has solved the problem of scarcity
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A Scarce goods are priceless b Incentives matterhuman choice is influenced in predictable ways by changes in personal costs and benefits c The realism of the assumptions is the best test of an economic theory d When deciding how to allocate time, the concept ofUp to24%cash backThat social science iseconomics, the study of how people choose to use scarce resources to satisfy their wants Economics involves 1 examininghow individuals, businesses, governments, and societies choose to use scarce resources to satisfy their wants 2 organizing, analyzing, and interpreting dataabout those economic behaviors
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