Question

5) When considering trade offs its important to

(a) know the inflation rate   

(b) weigh the costs and benefits of your decision

(c) consider opportunity costs

(d) understand zero sum game

Both B and C

6) An example of an incentive is

(a) Taxes

(b) Coupons

(c) Laws   

(d) Fines   

(e) Buy 1 get 1 Free   

(f) All of the above

7) Music sharing

(a) should be allowed with friends   

(b) should be allowed to be uploaded to napster and shared with anyone

(c) is an example of a free market

(d) would be considered a market failure

8) What is a correct cause-effect relationship

(a) Money Supply Increases - Deflation Increases  

(b) Inflation Increases - Unemployment Increases

(c) Money Supply Decreases - Inflation Increases   

(d) Inflation Increases - Employment Increases

Answer 1

5(c) consider opportunity costs

Cosidering the opportunity cost helps in decision making, so as to choose the best alternative in the given situation.

6 (b) Coupons

Coupons are a form of icetive which increases your consumption.

7. (d) would be considered a market failure

as this huts the producers of the music created, the sharing system actuallt deters many from the music industry as it is highly competitive.

8 d) Inflation Increases - Employment Increases

With the increase in inflation, theGDP also increases, this lead to increased output and increased employment.

_{(Please consider giving an upvote if you find it useful)}