Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world


Economists view the world using a number of key concepts. A few of these concepts introduced in Chapter 1 are: (a) goods and bads; (b) resources; (c) scarcity; (d) opportunity cost; (e) benefits and costs; (f) decisions made at the margin; (g) efficiency; (h) incentives: (i) unintended effects; (j) exchange.

Economics

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Adverse selection occurs when a sales offer attracts the kinds of customers that the seller does not want

Indicate whether the statement is true or false

Economics

As we approach total pollution abatement

A) the marginal benefit to society declines. B) the marginal benefit to society increases. C) the marginal benefit to society increases, but at a decreasing rate. D) the marginal cost to society declines.

Economics

According to the Heckscher-Ohlin model:

a. a relatively labor scarce country produces labor intensive goods. b. the labor productivity varies across different countries. c. the technological advancement varies across countries. d. the taste and preference patterns of the consumers are not similar across the countries. e. a capital abundant country exports sophisticated, manufactured products.

Economics

Assuming government's goal is to benefit society as much as possible:

A. actions with negative and positive externalities should be encouraged. B. actions with negative externalities should be restricted and actions with positive externalities should be encouraged. C. actions with negative and positive externalities should be restricted. D. actions with negative externalities should be encouraged and actions with positive externalities should be restricted.

Economics