Podcast
Questions and Answers
What is the primary focus of economics according to the text?
What is the primary focus of economics according to the text?
- Producing goods efficiently
- Attaining equality in society
- Managing scarce resources effectively (correct)
- Increasing the general level of prices
Which term refers to distributing prosperity uniformly among society's members?
Which term refers to distributing prosperity uniformly among society's members?
- Opportunity cost
- Incentive
- Equality (correct)
- Efficiency
What do rational people do according to the text?
What do rational people do according to the text?
- Evaluate costs and benefits of marginal changes (correct)
- Act randomly without purpose
- Make decisions impulsively
- Ignore costs and benefits
What is an incentive according to the text?
What is an incentive according to the text?
Which factor affects productivity according to the text?
Which factor affects productivity according to the text?
What is the main tradeoff society faces when it comes to achieving greater equality?
What is the main tradeoff society faces when it comes to achieving greater equality?
What concept emphasizes that what you give up to get something is the relevant cost for decision making?
What concept emphasizes that what you give up to get something is the relevant cost for decision making?
In an economy, what guides self-interested households and firms to make decisions that maximize society's economic well-being?
In an economy, what guides self-interested households and firms to make decisions that maximize society's economic well-being?
How does trade benefit countries and individuals according to the text?
How does trade benefit countries and individuals according to the text?
What economic principle states that more money in circulation leads to increased demand and subsequently higher prices?
What economic principle states that more money in circulation leads to increased demand and subsequently higher prices?
