In this section, you learned that scarcity is an integral part of the human experience. Our wants are unlimited, but our capability to produce and consume are limited. Therefore, we must learn to make the best choices with the resources we have. In this section, you were introduced to the economic way of thinking, the model-building process used by economists, and the pitfalls to economic reasoning.
Competency 1 – Applies economic theory to address decision-making in households and business firms. 1.1 The Economic Way of Thinking In this section, you learned that scarcity is an integral part of t
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