first principle of microeconomics - Correct Answer 1. People face tradeoffs
second principle of microeconomics - Correct Answer 2 the cost of something is what you give up to get it (opportunity cost)
third principle of microeconomics - Correct Answer 3 rational people think at the marg...
Microeconomics Exam 1 Butler Answered & Graded
first principle of microeconomics - Correct Answer 1. People face tradeoffs
second principle of microeconomics - Correct Answer 2 the cost of something is what you give up to get
it (opportunity cost)
third principle of microeconomics - Correct Answer 3 rational people think at the margin
fourth principle of microeconomics - Correct Answer 4 people respond to incentives
fifth principle of microeconomics - Correct Answer 5 trade can make everyone better off
sixth principle of microeconomics - Correct Answer 6 markets are usually a good way to organize
economic activity
seventh principle of microeconomics - Correct Answer 7 governments can sometimes improve market
outcomes
eighth principle of microeconomics - Correct Answer a country's standard of living depends on its ability
to produce goods and services
ninth principle of microeconomics - Correct Answer prices rise when the government prints too much
money
tenth principle of microeconomics - Correct Answer society faces a short-run trade-off between
inflation and unemployment
what are the first four principles of microeconomics about - Correct Answer how people make decisions
what are principles 5-7 of microeconomics about - Correct Answer how people interact
, what are principles 8-10 of microeconomics about - Correct Answer how the economy works as a whole
what is economics - Correct Answer the study of how society manages its scarce resources
what is scarcity - Correct Answer limited nature of society's resources, can't produce all people want
efficiency vs equality - Correct Answer efficiency increases "the pie" equality is about how "the pie" is
divided, there is a trade-off between the two often times
efficiency - Correct Answer property of society getting the most it can from its scarce resources
equality - Correct Answer property of distributing economic prosperity uniformly among the members
of society
opportunity cost - Correct Answer whatever must be given up to obtain some item
rational people - Correct Answer people who systematically and purposefully do the best they can to
achieve their objectivies
marginal change - Correct Answer small incremental adjustment to a plan of action
incentive - Correct Answer something that induces a person to act, can alter someone's behavior
how does trade make everyone better off - Correct Answer trade allows people to specialize in the
activities they do best, brings a greater variety of goods at lower costs
market economy - Correct Answer economy that allocates resources through the decentralized
decisions of many firms and households as they interact in markets for goods and services
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