ECON 102 QUESTIONS AND ANSWERS LATEST UPDATED
VERSION, GRADED A+.
scarcity
Scarcity means that society has limited resources and therefore cannot produce all the goods and
services people wish to have.
Economics is the study
how society manages its scarce resources.
ten principles of economics
How people make decisions ?
1. Tradeoffs
2. Opportunity cost
3. Thinking at the margin
4. Incentives
10 principles of economics
How people interact
5. Trade
6. Markets
7. Government
10 principles of economics
how economy works as a whole
8. Productivity
9. Inflation
10.Unemployment vs. Inflation
Principle #1: People Face Tradeoffs
All decisions involve tradeoffs
example of a tradeoff
Going to a party the night before your midterm exam leaves less time for studying.
Having more money to buy stuff requires working longer hours, which leaves less time for leisure
Society faces an important tradeoff
efficiency vs. equity
efficiency
Efficiency means society gets the most that it can from its scarce resources.
VERSION, GRADED A+.
scarcity
Scarcity means that society has limited resources and therefore cannot produce all the goods and
services people wish to have.
Economics is the study
how society manages its scarce resources.
ten principles of economics
How people make decisions ?
1. Tradeoffs
2. Opportunity cost
3. Thinking at the margin
4. Incentives
10 principles of economics
How people interact
5. Trade
6. Markets
7. Government
10 principles of economics
how economy works as a whole
8. Productivity
9. Inflation
10.Unemployment vs. Inflation
Principle #1: People Face Tradeoffs
All decisions involve tradeoffs
example of a tradeoff
Going to a party the night before your midterm exam leaves less time for studying.
Having more money to buy stuff requires working longer hours, which leaves less time for leisure
Society faces an important tradeoff
efficiency vs. equity
efficiency
Efficiency means society gets the most that it can from its scarce resources.
