Chapter 1 - Ten Principles of Economics

Efficiency vs. Equality

Efficiency vs. Equality

________ is a common trade- off in society.

Central planning

________ meant that the government could organize an economic activity that was beneficial for the country.

Rational people

________: people who systematically and purposefully do the best they can to achieve their objectives.

Productivity

________: the number of goods and services produced from each unit of labor input.

fuel efficient

Taxes on gas lead people to drive more small and ________ vehicles.

Scarcity

________: the limited nature of society's resources.

Equality

________: the property of distributing economic prosperity uniformly among the members of society.

Inflation

________ is typically caused by the growth of the nation in the quantity of money.