Tags & Description
Rational people
________ make decisions by comparing costs and benefits, and they respond to incentives.
Incentive
________- something that reduces a person to act.
seat belts
Though ________ reduce deaths in car accidents, people are less cautious when driving.
productivity
Variation in living standards depends on a countrys ________.
Households
________ and firms interacting in markets act as if they are guided by an "invisible hand "that leads them to desirable market outcomes.
Equality
________- the property of distributing economic prosperity uniformly among the members of society.
business cycle
The ________- fluctuations in economic activity (employment and production)
Inflation
________ occurs when a government creates large quantities of the nations currency, which leads to the fall of value in the currency.
Efficiency
________- the property of society getting the most it can from its scarce resources.
scarce resources
The ability of an individual to own and exercise control over ________.
overall level of spending
Increasing the amount of money in the economy stimulates the ________ and demand for goods and services.
Higher demands
________ cause firms to raise prices while encouraging them to hire more workers that can produce more goods.
Inflation
________- an increase in the overall level of prices in the economy.
Rational people
________ often make decisions by comparing marginal benefits and marginal costs.