ECN Exam 1 MindTap Study Guide Part 1
questions with 100% complete solutions
Scarcity - correct answer ✔✔Limited resources and unlimited wants
Explain the classic trade-off between "guns and butter" - correct answer ✔✔If
society spends more on national defense (guns) then they will have less to spend
on social programs (butter)
Explain why specialization and trade improve people's choices - correct answer
✔✔
Explain the source of large and persistent inflation - correct answer ✔✔
Marginal Costs - correct answer ✔✔
Marginal Benefits - correct answer ✔✔
Principle 1 - correct answer ✔✔People Face Trade Offs
Principle 2 - correct answer ✔✔The cost of something is what you give up to get it
Principle 3 - correct answer ✔✔Rational People think at the margin
, Principle 4 - correct answer ✔✔People respond to incentives
Principle 5 - correct answer ✔✔Trade can make everyone better off
Principle 6 - correct answer ✔✔Markets are usually a good way to organize
economic activity
Principle 7 - correct answer ✔✔Governments can sometimes improve market
outcomes
Principle 8 - correct answer ✔✔A country's standard of living depends on it's
ability to produce goods and services
Principle 9 - correct answer ✔✔Prices rise when the government prints too much
money
Principle 10 - correct answer ✔✔Society faces a short run of trade offs between
inflation and unemployment
Economics - correct answer ✔✔Study of how society manages its scarce resources
Efficiency - correct answer ✔✔The property of society getting the most from its
scarce resources
questions with 100% complete solutions
Scarcity - correct answer ✔✔Limited resources and unlimited wants
Explain the classic trade-off between "guns and butter" - correct answer ✔✔If
society spends more on national defense (guns) then they will have less to spend
on social programs (butter)
Explain why specialization and trade improve people's choices - correct answer
✔✔
Explain the source of large and persistent inflation - correct answer ✔✔
Marginal Costs - correct answer ✔✔
Marginal Benefits - correct answer ✔✔
Principle 1 - correct answer ✔✔People Face Trade Offs
Principle 2 - correct answer ✔✔The cost of something is what you give up to get it
Principle 3 - correct answer ✔✔Rational People think at the margin
, Principle 4 - correct answer ✔✔People respond to incentives
Principle 5 - correct answer ✔✔Trade can make everyone better off
Principle 6 - correct answer ✔✔Markets are usually a good way to organize
economic activity
Principle 7 - correct answer ✔✔Governments can sometimes improve market
outcomes
Principle 8 - correct answer ✔✔A country's standard of living depends on it's
ability to produce goods and services
Principle 9 - correct answer ✔✔Prices rise when the government prints too much
money
Principle 10 - correct answer ✔✔Society faces a short run of trade offs between
inflation and unemployment
Economics - correct answer ✔✔Study of how society manages its scarce resources
Efficiency - correct answer ✔✔The property of society getting the most from its
scarce resources
