8 Guideposts to economic thinking
What will be an ideal response?
1- There is always a tradeoff (opportunity cost)
2- Individuals choose purposefully, therefor economically (highest utility, lowest cost)
3- Incentives matter
4- People make decisions at the margin
5- Information is a costly good
6- Remembering the secondary effects
7- The value of a good or service is subjective
8- The test of a theory is it's ability to predict
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U.S. currency ________
A) is less efficient than barter B) includes tobacco C) is the sum of M1 and M2 D) is composed of the bills and coins held by individual and businesses
Refer to the Article Summary. The article discusses wealth inequality, and for some people this means a more equitable distribution of wealth is needed in the economy
Would an equitable distribution of wealth necessarily be the most efficient distribution of wealth? A) No, it is impossible to have an economically efficient distribution which is also an equitable distribution. B) Yes, equitable and efficient are two different words which have the same definition. C) Yes, in order for the distribution to be equitable, it must also be efficient. D) No, an economically efficient distribution of wealth would not necessarily be equitable.