PRINCIPLES OF ECONOMICS 2ND
AUSTRALIAN EDITION JOSEPH STIGLITZ
CARL WALSH JEFFREY GOW ROSS GUEST
WILLIAM RICHMOND MAX TANI TEST
BANK PRACTICE SCRIPT UPDATED 2026
TESTED SOLUTIONS
⫸ Resources are scarce... unlimited desires but limited resources
Answer: The fundamental economic problem
⫸ How people make decision Answer: Principles 1-4
⫸ How people interact Answer: Principles 5-7
⫸ Principle 1 Answer: People face tradeoffs. All decisions involve
tradeoffs (studying vs. sleeping) (work more vs. leisure time)
⫸ Tradeoffs Answer: exchange of something for something else
⫸ Principle 2 Answer: the cost of something is what you give up to get
it (money, time, and opportunity cost). All choices have a cost
associated with them.
AUSTRALIAN EDITION JOSEPH STIGLITZ
CARL WALSH JEFFREY GOW ROSS GUEST
WILLIAM RICHMOND MAX TANI TEST
BANK PRACTICE SCRIPT UPDATED 2026
TESTED SOLUTIONS
⫸ Resources are scarce... unlimited desires but limited resources
Answer: The fundamental economic problem
⫸ How people make decision Answer: Principles 1-4
⫸ How people interact Answer: Principles 5-7
⫸ Principle 1 Answer: People face tradeoffs. All decisions involve
tradeoffs (studying vs. sleeping) (work more vs. leisure time)
⫸ Tradeoffs Answer: exchange of something for something else
⫸ Principle 2 Answer: the cost of something is what you give up to get
it (money, time, and opportunity cost). All choices have a cost
associated with them.