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Incentive
________- something that reduces a person to act.
Pedestrians
________ are more likely to be found in car accidents because they have no added protection.
Rational people
________ make decisions by comparing costs and benefits, and they respond to incentives.
seat belts
Though ________ reduce deaths in car accidents, people are less cautious when driving.
Possible
________: market power- the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices.
Households
________ and firms interacting in markets act as if they are guided by an "invisible hand "that leads them to desirable market outcomes.
productivity
Variation in living standards depends on a countrys ________.
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 ________.
alternative choices
Making decisions requires comparing the costs and benefits of the ________.
overall level of spending
Increasing the amount of money in the economy stimulates the ________ and demand for goods and services.
unit of labor
The number of goods and services produced from each ________ input.
Rational people
________ often make decisions by comparing marginal benefits and marginal costs.
Note
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