10 Principles of Economics

Front

Economics is best defined as the study of how society manages its scarce resources.

Back

how society manages its scarce resources.

Front

Your opportunity cost of going to a movie is

Back

the total cash expenditure needed to go to the movie plus the value of your time.

Front

A marginal change is one that

Back

incrementally alters an existing plan.

Front

Because people respond to incentives, what can policymakers do?

Back

Policymakers can alter outcomes by changing punishments or rewards, policies can have unintended consequences, and society faces a trade-off between efficiency and equality.