Economics Principles Quiz

Economics is the study of how society manages its scarce resources.

Scarcity refers to the limited nature of society's resources.

One example of a trade-off mentioned in the text is choosing between going to a party the night before a midterm or studying.

<p>The first principle of economics is that people face trade-offs.</p> Signup and view all the answers

<p>Economics examines how people make decisions.</p> Signup and view all the answers

<p>The production possibilities frontier and the circular flow diagram.</p> Signup and view all the answers

<p>To illustrate the flow of goods, services, and money between households and firms.</p> Signup and view all the answers

<p>To explain the world using the scientific method.</p> Signup and view all the answers

<p>To improve policy.</p> Signup and view all the answers

<p>A dispassionate development and testing of theories about how the world works.</p> Signup and view all the answers