Progress test 1 revision

It is assumed that everyone tends to behave ___________ when they make choices.

• rationally
• critically
• logically

When making choices, rational individuals make a comparison between ___________ and ____________.

• benefit; cost
• marginal benefit; marginal cost
• demand; supply

Which factor influences the decisions of households, firms and workers in markets?

• Prices
• Quantities
• Policies

Which economy happens when the government makes the most important decisions about the production and costs of goods and services consumed? 

• Command economy
• Free market economy
• Mixed economy

In free market economy, which of the following leads individuals to do things that are in the interests of society as a whole? 

• Government policies
• The invisible hand
• Prices of goods and services

How many principles of economics are there?

• 8

• 9

• 10

Principle ____________ indicates how people interact with one another?

• 1-4
• 5-7
• 8-10

“There ain’t no such thing as a free lunch.” is the example for which of the following principle?

• Principle 1: People face trade-off
• Principle 2: The cost of something is what you give up to get it
• Principle 3: Rational people think at the margin

“People respond to incentives” belongs to which of the following group of principles?

• how individuals make decisions
• how people interact with one another
• how the economy works as a whole

“Society faces a short-run trade-off between inflation and unemployment” belongs to which of the following group of principles?

• how individuals make decisions
• how people interact with one another
• how the economy works as a whole