Scarcity Is a Problem

question 65

Multiple Choice

Scarcity is a problem:

• A) measured by the amount of goods available.
• B) of the poor, but not the rich.
• C) because human wants are unlimited while resources are limited.
• D) only in industrialized economies.

Recognize the contributions of key figures in the field of behavioral economics.

Contrast the prediction capabilities of neoclassical and behavioral economics in real-world economic crises.

Understand the distinction and application of System 1 and System 2 in decision-making processes.

Recognize various cognitive biases and their impact on economic behavior.

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Definitions:

Electromagnetic Waves

Waves of the electromagnetic field, propagating through space, carrying electromagnetic radiant energy.

Stimulation

The action of arousing interest, excitement, or activity in someone or something.

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time, a concept used in sensory and perception studies.

Olfaction

The sense of smell, a chemical sensing system that detects airborne molecules.