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WorksheetsGuess that Principle (10 principles of economics)
Total questions: 10
Worksheet time: 5mins
A family consumes more goods and services by specializing in the production of only one good
Principle 3: Rational people think at the margin
Principle 5: Trade can make everyone better off
Principle 1: People face tradeoffs
Principle 9: Prices rise when the government prints too much money
Bill buys a home because he is confident that he is protected by property rights laws
Principle 7: governments can sometimes improve market outcomes
Principle 10: Society faces a short-run tradeoff between inflation and unemployment
Principle 1: People face tradeoffs
Principle 4: People face incentives
Jasmine wants to go to the movies with her friends, but she has homework due tonight. She must give up going to the movies if she wants to finish her homework.
Principle 7: the government can sometimes improve market outcomes
Principle 1: people face tradeoffs
Principle 2: the cost of something is what you give up to get it
Principle 6: Markets are usually a good way of organizing economic activity
A t-shirt that Katie really wants is on sale for 10% off. She wouldn't have bought it at its original price, but now that it is 10% off she buys it.
Principle 1: People face tradeoffs
Principles 9: Prices rise when the government prints too much money
Principle 3: Rational people think at the margin
Principle 4: People respond to incentives
When you join the economics association on campus, you get a free t-shirt and some pizza. But, in order to get those free things you must give up your time for club meetings.
Principle 1: People face tradeoffs
Principle 10: Society faces a short-run tradeoff between inflation and unemployment
Principle 5: Trade can make everyone better off
Principle 3: Rational people think at the margin
Emily considers how much more time she would have to spend studying to increase her midterm grade by 2%
Principle 7: Governments can sometimes improve market outcomes
Principle 2: the cost of something is what you give up to get it
Principle 3: Rational people think at the margin
Principle 8: A country's standard of living depends on its productivity
The United States is more productive than Australia, which means that the United States is a wealthier country.
Principle 1: People face tradeoffs
Principle 7: Governments can sometimes improve market outcomes
Principle 8: A country's standard of living depends on its ability to produce goods and services
Principle 9: Prices rise when the government prints too much money
The Scottish government decides to print more money, and the price of milk rices from $1 a gallon to $4 a gallon
Principle 5: Trade can make everyone better off
Principle 2: The cost of something is what you give up to get it
Principle 4: People respond to incentives
Principle 9: Prices rise when the government prints too much money
Adam Smith said that the "invisible hand" controls the market and creates the optimal outcome
Principle 1: people face tradeoffs
Principle 3: Rational people think at the margin
Principle 6: Markets are usually a good way of organizing economic activity
Principle 9: Prices rise when the government prints too much money
The government prints more money to stimulate the economy and create more jobs, but the price of milk increases from $1 to $4.
Principle 9: Prices rise when the government prints too much money
Principle 5: Trade can make everyone better off
Principle 10: Society faces a short run tradeoff between inflation and unemployment
Principle 3: Rational people think at the margin
