25 Questions

Think like an economist

1. Economics is the study of what?

2. What three things to economists assume about people?

3. What is an economic model?

4. If you change someone’s incentives you will change their________________.

5. Is economics a hard or soft science?

6. What is more important, incentives or goals?

7. What is more important, consequences or intentions?

8. What is wealth?

9. How do you get rich?

10. Where is the iPhone made?

11. What does Yabut mean?

12. What is opportunity cost?

13. What is comparative advantage?

14. What does a production possibilities curve illustrate?

15. Why does the production possibilities curve bow out?

16. How does the production possibilities curve move out?

17. What is the difference between positive economics and normative economics?

18. Does medical care guarantee good health?

19. As I spend more and more on medical care, does health improve as well?

20. What does the law of diminishing marginal utility mean for medical spending and health?

21. If the government sets a minimum price (price floor) above market equilibrium, what will happen?

22. If the government sets a maximum price (price ceiling) above market equilibrium, what will happen?

23. Why do people trade?

24. Who wins when a trade occurs?

25. When a trade occurs there is one price, how many values are there?