10 Questions
What is the main focus of positive economics?
Explaining how the economy actually works
Which type of economy involves individual producers and consumers making decisions?
Market Economy
What is the main characteristic of a Command Economy?
Central authority makes decisions
What is the term for the study of marginal decisions?
Marginal Analysis
What does the principle of 'opportunity cost' refer to?
What must be given up to get something
In economics, what do incentives aim to do?
Reward people for changing their behavior
What principle states that markets usually lead to efficiency?
Principle #8
'Reciprocal relationship between costs and benefits' implies that:
Avoiding a benefit leads to incurring a cost and vice versa
'Gains from Trade' concept emphasizes that:
'Gains from Trade' allow people to get more of what they want through trade
What is the main role of the Invisible Hand principle in economics?
To guide individuals towards making choices that benefit society as a whole
Test your knowledge on basic concepts in economics such as social science, positive economics, normative economics, economy, and market economy.
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