Questions and Answers
What is the primary focus of economics according to the text?
Managing scarce resources effectively
Which term refers to distributing prosperity uniformly among society's members?
Equality
What do rational people do according to the text?
Evaluate costs and benefits of marginal changes
What is an incentive according to the text?
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Which factor affects productivity according to the text?
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What is the main tradeoff society faces when it comes to achieving greater equality?
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What concept emphasizes that what you give up to get something is the relevant cost for decision making?
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In an economy, what guides self-interested households and firms to make decisions that maximize society's economic well-being?
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How does trade benefit countries and individuals according to the text?
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What economic principle states that more money in circulation leads to increased demand and subsequently higher prices?
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