The economic way of thinking includes:

Question

Quizplus · Accepted Answer

The economic way of thinking assumes that individuals choose to maximize some objective, such as utility or profit. This assumption forms the basis of many economic models and theories. Choice A is incorrect because the economic way of thinking involves weighing both benefits and costs. Choice C is incorrect because economists generally focus on how choices affect marginal (i.e. additional) values rather than total values. Choice D is incorrect because the problem of scarcity -- i.e. the fact that resources are limited relative to human wants and needs -- remains a fundamental economic problem that must be addressed through careful allocation and management of resources.

The Economic Way of Thinking Includes