MICROECONOMICS PRINCIPLES FOR A
CHANGING WORLD CERTIFICATION TEST
PAPER VERIFIED QUESTIONS AND
SOLUTIONS GRADED A+
●● economics
Answer: the study of how society manages it's scarce resources
●● 4 ways people make decisions
Answer: 1)people face tradeoffs
2)the cost of something is what you give up to get it
3)rational people think at the Margin
4)People Respond to Incentives
●● 3 ways people interact
Answer: 5)Trade can make everyone better off
6)Markets are usually a good way to organize economic activity
7)Governments can sometimes improve market outcomes
●● efficiency
Answer: when society gets most from scarce resources
, ●● equality
Answer: when prosperity is distributed uniformly among society's
members
●● opportunity cost
Answer: whatever must be given up to obtain some item
●● rational people
Answer: people who systematically and purposefully do the best they
can do to achieve their objectives
●● marginal changes
Answer: small incremental adjustments to a plan of action
●● incentive
Answer: something that induces a person to act
●● market economy
Answer: an economy that allocates resources through the decentralized
decisions of many firms and households as they interact in markets for
goods and services
CHANGING WORLD CERTIFICATION TEST
PAPER VERIFIED QUESTIONS AND
SOLUTIONS GRADED A+
●● economics
Answer: the study of how society manages it's scarce resources
●● 4 ways people make decisions
Answer: 1)people face tradeoffs
2)the cost of something is what you give up to get it
3)rational people think at the Margin
4)People Respond to Incentives
●● 3 ways people interact
Answer: 5)Trade can make everyone better off
6)Markets are usually a good way to organize economic activity
7)Governments can sometimes improve market outcomes
●● efficiency
Answer: when society gets most from scarce resources
, ●● equality
Answer: when prosperity is distributed uniformly among society's
members
●● opportunity cost
Answer: whatever must be given up to obtain some item
●● rational people
Answer: people who systematically and purposefully do the best they
can do to achieve their objectives
●● marginal changes
Answer: small incremental adjustments to a plan of action
●● incentive
Answer: something that induces a person to act
●● market economy
Answer: an economy that allocates resources through the decentralized
decisions of many firms and households as they interact in markets for
goods and services
