Economics Chapter One Quiz Six Principles of Economics: Flashcards
1
Q
First Principle
A
How People Choose
2
Q
Second Principle
A
People’s choices Involve Costs
3
Q
Third Principle
A
People Respond to Incentives in Predictable ways
4
Q
Fourth Principle
A
Rules of the Game (People Create Economic Systems influencing individual choices and incentives)
5
Q
Fifth Principle
A
People Gain when they trade voluntarily
6
Q
Sixth Principle
A
People’s Choices have Primary and Secondary Effects
7
Q
First Factor of Production
A
Land
8
Q
Second FOP
A
Labor
9
Q
Third FOP
A
Capital
10
Q
Fourth FOP
A
Management
