review vocabulary terms
| Question | Answer |
|---|---|
| The economic system where there is little incentive to do charity work is…` | capitalism or market |
| The people of which community have the most individual economic freedom? | Hong Kong |
Who made the economic decisions?
Producers and consumers make rational decisions about what will satisfy their self-interest and maximize profits, and the market responds accordingly. In a planned economy, the government makes most decisions about what will be produced and what the prices will be, and the market must follow that plan.
How are people supposed to make economic decisions?
How People Make Economic Decisions. People make economic decisions every day. There are four principles of individual decision-making (Mankiw), people face trade-offs, the cost of something one gives up to get it, rational people think at the margin, and people respond to incentives.
What are the four principles of economic decision making?
How People Make Economic Decisions According to Mankiw, the four principles of individual decision -making are: “ People Face Trade-offs, The Cost of Something Is What You Give Up to Get It, Rational People Think at the Margin, and People Respond to Incentives:” People face trade-offs by having to give up something to get what they want or need.
Who are the economic decision makers in a business?
Anyone using accounting information to make economic decisions must under-stand the business and economic environment in which accounting information is generated, and they must also be willing to devote the necessary time and energy to make sense of the accounting reports. Economic decision makers are either internal or external. Internal decision
How does the principle of economics affect the economy?
The principle of economics does affect decision-making, interaction, and workings of the economy as a whole. The first principle is that people face trade-offs. This means that a person may have to give up something to get something else. Time is a good example of this principle.
