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Using examples explain why people cannot have everything they want scarcity and describe how people respond choice. The Problem of Choice. Basic Economic Problem Economics Help For example people commonly use heuristics and rules of thumb. . However to bring the problem into focus two good examples of recommendation systems are. Because resources are scarcice and have alternative use we must confront the problem of choice. Explain free goods Essential economic questions. People want and need variety of goods and services. Offering news articles to on-line newspaper readers based on a prediction of reader interests. Cultural Capital Social forms of capital. To understand her choice and how it is affected by technological change we need to model her production function and her preferences. Bounded Rationality The theory that people are basically rational with several important limits. For example a free ridin...