Econ Movie "Star Wars" & Scarcity

The study of scarcity and choices is known as what?

• exchange

• economics

• trade

• business

TRUE or FALSE: In economics, we assume that everyone makes decisions in their own self-interest.

• True

• False

TRUE or FALSE: People make decisions based on their own self-interests by looking at incentives.

• True

• False

Buyers and sellers get together and negotiate based on their own self-interests describes which economics concept?

• free enterprise

• involuntary exchange

• voluntary exchange

• capitalism

Select all correct answers.

• Buyers want high prices.

• Sellers want high prices.

• Buyers want low prices.

• Sellers want low prices.

The idea that someone is forced to buy or sell something is known as what?

• free enterprise

• involuntary exchange

• voluntary exchange

• capitalism

You make choices that help yourself, but they end up helping everyone else too. What concept does this describe?

• free enterprise

• government involvement

• invisible hand

• capitalism