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  3. consider the statement that follows quot economics is the study...

Question: consider the statement that follows quot economics is the study...

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Consider the statement that follows: "... Economics is the study of how humans make decisions in the face of scarcity. These can be individual decisions, family decisions, business decisions or societal decisions. If you look around carefully, you will see that scarcity is a fact of life. Scarcity means that human wants for goods, services and resources exceed what is available..."

How could you use this statement to explain why two people who make the same amount of money, but one of them chooses to own a big house and drive a small car and the other chooses to drive a big car and live in a small house?

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