1.) The broadest definition of economics is the study of how people make decisions givena.) incentivesb.) scarcityc.) comparative advantaged.) income2.) "When deciding how many toppings to get on my pizza, I chose the number of toppings so thatthe benefit to me of the last topping I added on my pizza was equal to the cost of the last toppingof pizza." This is a (somewhat silly) example of what principle of economics?a.) The relevant cost is opportunity costb.) Everyone can benefit from tradec.) Markets achieve good outcomesd.) Making decisions on the margin

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1.) The broadest definition of economics is the study of how people make decisions given a.) incentives b.) scarcity c.) comparative advantage d.) income

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 3PA

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Question

1.) The broadest definition of economics is the study of how people make decisions given
a.) incentives
b.) scarcity
c.) comparative advantage
d.) income
2.) "When deciding how many toppings to get on my pizza, I chose the number of toppings so that
the benefit to me of the last topping I added on my pizza was equal to the cost of the last topping
of pizza." This is a (somewhat silly) example of what principle of economics?
a.) The relevant cost is opportunity cost
b.) Everyone can benefit from trade
c.) Markets achieve good outcomes
d.) Making decisions on the margin

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