Economics is the study of limited resources. People have unlimited wants but resources are limited. Economics assumes that people are rational, respond to incentives, and consider costs and benefits at the margin. It focuses on consequences rather than intentions, and a person's incentives can predict their behavior.

1. 101 Quiz 1 Name__________ Fill in blanks
1. Economics is the study of _______________
2. We live in a world of ______ wants and ______resources
3. Economics assumes three things about people:
_____________, ________________, ______________
4. Consequences are more important than __________.
5. If you know a person’s incentives, you can predict his or her
___________.

2. 101 Quiz 1 Name__________ Fill in blanks
Choices
1. Economics is the study of _______________
unlimited limited
2. We live in a world of ______ wants and ______resources
3. Economics assumes three things about people:
Rational Incentives Margin
_____________, ________________, ______________
Intentions
4. Consequences are more important than __________.
5. If you know a person’s incentives, you can predict his or her
___________.
Behavior