L1.1 Exit Ticket

What does scarcity force people to do?

• Avoid making decisions

• Ignore resources

• Make choices and face tradeoffs

• Increase resources

When do people choose something according to the principle of cost versus benefits?

• When the costs and benefits are equal

• When the benefits are greater than the costs

• When the costs are higher than the benefits

• When there are no costs involved

What does 'thinking at the margin' involve?

• Making decisions without considering the margin

• Avoiding decisions altogether

• Making decisions about a little more or a little less of something

• Making decisions about a lot more or a lot less of something

How do people generally respond to incentives?

• In unpredictable ways

• By ignoring them

• In generally predictable ways

• By avoiding them

What is one benefit of trade according to the text?

• It makes people worse off

• It limits choices

• It makes people better off

• It reduces resources