Describe at least three of the key concepts in economics introduced in Chapter 1 of the textbook that define how an economist views the world
Economists view the world using a number of key concepts. A few of these concepts introduced in Chapter 1 are: (a) goods and bads; (b) resources; (c) scarcity; (d) opportunity cost; (e) benefits and costs; (f) decisions made at the margin; (g) efficiency; (h) incentives: (i) unintended effects; (j) exchange.
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Computer chips are a normal good. Suppose the economy slips into a recession so that income falls. As a result, the demand for computer chips ________ so that the price of a computer chip ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls E) decreases; does not change
A lending of a country's savings that occurs when the country has a trade deficit and its citizens purchase real and financial assets from abroad is called a capital inflow
Indicate whether the statement is true or false