Economics Policy Criteria and Questions Quiz

The growth of railroads and improvement in transportation led to the expansion of markets, increased trade, and the need for more sophisticated banking services to facilitate transactions.

A tax on carbon would increase the cost of emitting carbon, leading to a decrease in emissions as firms seek to reduce their tax burden.

Increasing the minimum wage may lead to a trade-off where some jobs are lost due to higher labor costs, but it can also stimulate consumer demand and boost the economy.

<p>Price wars in the airline industry can be attributed to factors such as excess capacity, competition for market share, and attempts to drive out rivals.</p> Signup and view all the answers

<p>Concerns about the environment can lead to calls for environmental regulations or tariffs on goods produced in ways that harm the environment, potentially impacting free trade agreements.</p> Signup and view all the answers

<p>Corruption can be more widespread in countries with weak institutions, lack of transparency, low accountability, and where there are high levels of discretion in decision-making.</p> Signup and view all the answers

<p>The four specific criteria are efficiency, equity, growth, and stability.</p> Signup and view all the answers

<p>Positive economics attempts to understand behavior and the operation of economies, while normative economics deals with value judgments about what the economy should be like.</p> Signup and view all the answers

<p>Opportunity cost refers to the value of the next best alternative that must be forgone in order to pursue a different option.</p> Signup and view all the answers

<p>Marginalism is the study of marginal (additional) changes in the benefits and costs of a specific choice.</p> Signup and view all the answers

<p>An efficient market is one where asset prices reflect all available information and resources are allocated optimally.</p> Signup and view all the answers

<p>The Industrial Revolution was a period of major industrialization and technological advancement that began in Britain in the late 18th century.</p> Signup and view all the answers

<p>Opportunity cost is the best alternative that we forgo or give up when we make a choice or decision.</p> Signup and view all the answers

<p>Marginalism is the process of analyzing the additional or incremental costs or benefits arising from a choice or decision.</p> Signup and view all the answers

<p>The three fundamental concepts are opportunity cost, marginalism, and the working of efficient markets.</p> Signup and view all the answers

<p>Studying economics helps in learning a way of thinking, understanding society, and being an informed citizen.</p> Signup and view all the answers

<p>The outcome is what happens in the economy, driven by individual opportunity costs and choices.</p> Signup and view all the answers

<p>Nearly all decisions involve trade-offs because people have limited resources and must make choices on how to allocate them.</p> Signup and view all the answers