ECON Chapter 1 The Core Principles Of Economics
With Complete Solutions Latest Update
Economics= - correct answers the study of people in the ordinary business of life
microeconomics= - correct answers the study of individual decisions
macroeconomics= - correct answers the study of decision making across the whole economy
the four core principles - correct answers 1. cost-benefit principle
2. opportunity cost principle
3. marginal principle
4. interdependence principle
2 incentives that shape decisions - correct answers 1. cost
2. benefit
for you to pursue it, the benefit needs to be - correct answers at least as large as their costs
willingness to pay= - correct answers how much you value the good
can the benefits you get from something be unrelated to the price you pay? - correct answers yes
- ex: google is free, yet you benefit from using it
economic surplus= - correct answers total benefits minus the total costs flowing from a decision
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