Economic Principles Practice (ECON Ch 1)

Economic Principles Practice (ECON Ch 1)

Multiple Choice

the idea that markets are usually the best way to coordinate exchanges between buyers and sellers

• Trade Makes people better off

• markets coordinate trade

Multiple Choice

the idea that limited resources force people to make choices and always have to give up something when they choose

• scarcity forces trade-off

• thinking at the margins

Multiple Choice

the idea that many decisions involve choices about using or doing a little more or a little less of something rather than making a wholesale change

• thinking at the margins

• cost versus benefits

Multiple Choice

the idea that people choose something when the advantages of doing so outweigh the resources used to get it

• cost versus benefits

• scarcity forces trade-offs

Multiple Choice

the general observation that the actions of people and governments always have effects that are not expected or intended

• future consequences count

• markets coordinate trade

Multiple Choice

the idea that people respond to motivation to do something that will benefit them in generally predictable ways

• incentives matter

• trade makes people better off

Multiple Choice

the idea that people benefit by focusing on what they do well and then exchanging goods and services with others, rather than trying to do everything for themselves

• trade makes people better off

• markets coordinate trade

Poll

How well do you think you understand the Economic Principles?

• Still lost

• need some help with some

• feeling pretty good

• I got this!

Poll

Which principles do we need to review?

If you are confident you 'got this' you don't have to check any off...

• Principle 1: Scarcity Forces Trade offs

• Principle 2: Costs Versus Benefits

• Principle 3: Thinking at the Margin

• Principle 4: Incentives Matter

Poll

Again, choose the Principles we need to review

• Principle 5: Trade Makes People Better Off

• Principle 6: Markets Coordinate Trade

• Principle 7: Future Consequences Count