2.Economics

Question 1

OPPORTUNITY COST

Answer 1

whatever you give up to do something.

Question 2

SCARCITY

Answer 2

the tension between infinite wants and finite resources.

Question 3

INCENTIVES

Answer 3

a set of external (rather than intrinsic) motivators that explain people’s choices.

Question 4

MACROECONOMICS

Answer 4

the study of production, employment, prices, and policies on a nationwide scale.

Question 5

MICROECONOMICS

Answer 5

the study of how consumers, workers, and firms interact to generate outcomes in specific markets.

Question 6

What are some examples of people incentivizing the wrong thing

Answer 6

colleges being given money for how many students it has rather than how many graduate, or how many achieve sucees or happiness later on.
or ratcatchers paying for rat tails which just led to people breeding rats instead of catching them.

Question 7

What some questions people who deal in macroeconomics ask?

Answer 7

it looks at the whole nation’s output, unemployment, interest rates, government spending, and growth. Macro answers questions like “Will unemployment rise if there’s an increase in taxes?” “Will and increase in the money supply boost output or just increase inflation?” “Will a slump in European economies cause the US economy to slow down?”

Question 8

What some questions people who deal in microeconomics ask?

Answer 8

“How many workers should we hire to maximize profit?” “If our main competitor releases their product in May, when is the best time to release our product?” and “which is better for fighting climate change, a gas tax, or increase in fuel efficiency?”

Question 9

What are the two most important concepts

Answer 9

scarcity, and everything has a cost whether it be money, time, or consequences