1) Explain these three key economic ideas: People are rational, people respond to incentives, and optimal decisions are made at the margin. 2) Discuss how a society answers these three economic questions: What goods and services will be produced? How will the goods and services be produced? Who will receive the goods and services produced?
1) Explain these three key economic ideas: People are rational, people respond to incentives, and optimal decisions are made at the margin. 2) Discuss how a society answers these three economic questions: What goods and services will be produced? How will the goods and services be produced? Who will receive the goods and services produced?
Chapter3: Scarcity, Trade-offs, And Production Possibilities
Section: Chapter Questions
Problem 1P
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![1) Explain these three key economic ideas: People are rational, people
respond to incentives, and optimal decisions are made at the margin.
2) Discuss how a society answers these three economic questions: What
goods and services will be produced? How will the goods and services
be produced? Who will receive the goods and services produced?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad9184c4-be96-4825-a4b1-d833bd30cc16%2Fe9eed654-b6e0-46ef-b557-eb3309ee2228%2Fe0k8lcl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1) Explain these three key economic ideas: People are rational, people
respond to incentives, and optimal decisions are made at the margin.
2) Discuss how a society answers these three economic questions: What
goods and services will be produced? How will the goods and services
be produced? Who will receive the goods and services produced?
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