Macro Eco Quiz 1

Principle #1

Trade-offs

Principle #2

The cost of something is what you give up to get it

Principle #3

Rational people think at the margin

Principle #4

Incentives

Principle #5

Trade can make people better off

Principle #6

Markets are a good way to organize economic activity

Principle #7

Governments can sometime improve market outcomes

Principle #8

A country’s standard of living depends on how much it produces

Principle #9

Inflation

Principle #110

Society faces short-run trade offs between inflation and unemployment

Group 1

How people make decisions

Group 2

How people interact

Group 3

How the economy as a whole works