10 Questions
What is economics all about?
Economics is the study of how society manages its scarce resources.
What is scarcity?
Scarcity refers to the limited nature of society's resources.
Give an example of a trade-off mentioned in the text.
One example of a trade-off mentioned in the text is choosing between going to a party the night before a midterm or studying.
What is the first principle of economics?
The first principle of economics is that people face trade-offs.
How does economics examine decision-making?
Economics examines how people make decisions.
What are the two models introduced in this chapter?
The production possibilities frontier and the circular flow diagram.
What is the purpose of the circular flow diagram?
To illustrate the flow of goods, services, and money between households and firms.
What is the role of economists as scientists?
To explain the world using the scientific method.
What is the role of economists as policy advisers?
To improve policy.
What is the scientific method?
A dispassionate development and testing of theories about how the world works.
Test your knowledge of the ten principles of economics and understand the concept of scarcity. Explore how society manages its limited resources and learn about decision-making processes related to buying, working, saving, and production.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
