Economic Way of Thinking

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1, Assume your neighbor is a doctor. He complains bitterly about the overtime that he is putting in at the hospital each weekend. While the overtime is not required, he argues that by not taking it he would be sacrificing $1,000 each weekend. If he were to ask for your opinion about what to do, what would you advise him?

2 What is scarcity? Why is scarcity central to the study of economics? Please give a real world example of scarcity.

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