10 Principles of Economics Flashcards
1
Q
1.
A
People Face Trade offs
2
Q
2.
A
Opportunity Cost ( what you give up to get something)
3
Q
3.
A
Rational people think Marginal
4
Q
4.
A
People Respect Incentives
5
Q
5.
A
Trade usually makes people better off
6
Q
6.
A
The markets are a good way to organize economic activity
7
Q
7.
A
Governments can usually improve market outcomes
8
Q
8.
A
A countries standard of living depends on its ability to produce goods and services
9
Q
9.
A
Prices rise when the government prints too much money
10
Q
10.
A
Short run trade off between inflation and unemployment
