Podcast
Questions and Answers
What is economics about?
What is economics about?
Economics is about the allocation of scarce resources.
What is an example of a trade-off?
What is an example of a trade-off?
The classic trade-off is between "guns and butter," where society must decide how much to spend on national defense (guns) and how much to spend on social programs (butter).
What is opportunity cost?
What is opportunity cost?
The opportunity cost of an item is what you give up to get that item.
What is the meaning of marginal changes?
What is the meaning of marginal changes?
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Rational people are only concerned with their own self-interest.
Rational people are only concerned with their own self-interest.
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Trade can make everyone worse off.
Trade can make everyone worse off.
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The government can always improve market outcomes.
The government can always improve market outcomes.
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A country's standard of living is determined primarily by its natural resources and its climate.
A country's standard of living is determined primarily by its natural resources and its climate.
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Inflation is always caused by rapid increases in the quantity of money.
Inflation is always caused by rapid increases in the quantity of money.
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There is always a short-run trade-off between inflation and unemployment.
There is always a short-run trade-off between inflation and unemployment.
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What is an externality?
What is an externality?
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What is market power?
What is market power?
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The goal of economics is to make everyone equally wealthy.
The goal of economics is to make everyone equally wealthy.
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The "invisible hand" refers to the idea that government intervention is necessary to regulate markets effectively.
The "invisible hand" refers to the idea that government intervention is necessary to regulate markets effectively.
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Trade is always beneficial for both parties involved in the transaction.
Trade is always beneficial for both parties involved in the transaction.
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Government intervention is always needed to correct for market failures.
Government intervention is always needed to correct for market failures.
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A country's standard of living is solely determined by its natural resources.
A country's standard of living is solely determined by its natural resources.
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Inflation is always a result of government printing too much money.
Inflation is always a result of government printing too much money.
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The trade-off between inflation and unemployment is a long-term phenomenon that persists indefinitely.
The trade-off between inflation and unemployment is a long-term phenomenon that persists indefinitely.
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Externalities always have negative consequences for society.
Externalities always have negative consequences for society.
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Individuals with market power have a strong incentive to act in ways that benefit society as a whole.
Individuals with market power have a strong incentive to act in ways that benefit society as a whole.
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The primary goal of economic policy should be to redistribute wealth equally across society.
The primary goal of economic policy should be to redistribute wealth equally across society.
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The "invisible hand" refers to a government agency that regulates markets.
The "invisible hand" refers to a government agency that regulates markets.
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