武汉人信汇SOLUTIONS TO TEXT PROBLEMS:
Quick Quizzes
1. The four principles of economic decisionmaking are: (1) people face tradeoffs; (2) the cost of something is what you give up to get it; (3) rational people think at the margin; and (4) people respond to incentives. People face tradeoffs becau to get one thing that they like, they usually have to give up another thing that they like. The cost of something is what you give up to get it, not just in terms of monetary costs but all opportunity costs. Rational people think at the margin by taking an action if and only if the marginal benefits exceed the marginal costs. People respond to incentives becau as they compare benefits to costs, a change in incentives may cau their behavior to change.
2. The three principles concerning economic interactions are: (1) trade can make everyone better off; (2) markets are usually a good way to organize economic activity; and (3) governments can sometimes improve market outcomes. Trade can make everyone better off becau it allows countries to specialize in what they do best and to enjoy a wider variety of goods and rvices. Markets are usually a good way to organize economic activity becau the invisible hand leads markets to desirable outcomes. Governments can sometimes improve market outcomes becau sometimes markets fail to allocate resources efficiently becau of an externality or market power.
3. The three principles that describe how the economy as a whole works are: (1) a country’s standard of living depends on its ability to produce goods and rvices; (2) prices ri when the government prints too much money; and (3) society faces a short-run tradeoff between inflation and unemployment. A country’s standard of living depends on its ability to produce goods and rvices, which in turn depends on its productivity, which is a function of the education of workers and the access workers have to the necessary tools and technology. Prices ri when the government prints too much money becau more money in circulation reduces the value of money, causing inflation. Society faces a short-run tradeoff between inflation and unemployment that is only temporary and policymakers have some ability to exploit this relationship using various policy instruments.
Questions for Reviewymg
lackin>什么叫平面设计1. Examples of tradeoffs include time tradeoffs (such as studying one subject over another, or studying at all compared to engaging in social activities) and spending tradeoffs (such as whether to u your last ten dollars on pizza or on a study guide for that tough economics cour).
2. The opportunity cost of eing a movie includes the monetary cost of admission plus the time cost of going to the theater and attending the show. The time cost depends on what el you might
do with that time; if it's staying home and watching TV, the time cost may be small, but if it's working an extra three hours at your job, the time cost is the money you could have earned.vesak day
3. The marginal benefit of a glass of water depends on your circumstances. If you've just run a marathon, or you've been walking in the dert sun for three hours, the marginal benefit is very high. But if you've been drinking a lot of liquids recently, the marginal benefit is quite low. The point is that even the necessities of life, like water, don't always have large marginal benefits.
4. Policymakers need to think about incentives so they can understand how people will respond to the policies they put in place. The text's example of at belts shows that policy actions can have quite unintended conquences. If incentives matter a lot, they may lead to a very different type of policy; for example, some economists have suggested putting knives in steering columns so that people will drive much more carefully! While this suggestion is silly, it highlights the importance of incentives.
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5. Trade among countries isn't a game with some lors and some winners becau trade can make everyone better off. By allowing specialization, trade between people and trade between countries can improve everyone's welfare.
6. The "invisible hand" of the marketplace reprents the idea that even though individuals and firms are all acting in their own lf-interest, prices and the marketplace guide them to do what is good for society as a whole.
long time no e什么意思7. The two main caus of market failure are externalities and market power. An externality is the impact of one person’s actions on the well-being of a bystander, such as from pollution or the creation of knowledge. Market power refers to the ability of a single person (or small group of people) to unduly influence market prices, such as in a town with only one well or only one cable television company. In addition, a market economy also leads to an unequal distribution of income.
8. Productivity is important becau a country's standard of living depends on its ability to produce goods and rvices. The greater a country's productivity (the amount of goods and rvices produced from each hour of a worker's time), the greater will be its standard of living.
we are the millers惊喜的英文怎么写9. Inflation is an increa in the overall level of prices in the economy. Inflation is caud by increas in the quantity of a nation's money.newarrival
