Question

An economist Paul Heyne wrote a famous economic principles textbook entitled The Economic Way of Thinking. Based on your studies and reading from Module 1, write a short essay outlining what you understand to be "the economic way of thinking"?

Answer 1

Economic way of thinking explores the decisions made by people under difficult circumstances such as scarcity, and within the structures of production, consumption, and distribution. It also investigates the impact the government policies and actions have on the market outcomes, and provides a framework people, companies, and government can use to make decisions.

Step-by-step explanation: