Seven Principles Responses
After you have read the text, answer the questions below. Do not rewrite the question, but include it in your answer.
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What will there never be enough of?
When you choose one thing over another, you are making what?
What is the no-free-lunch principle?
How might the scarcity forces tradeoffs principle come into play if you buy a used car for the trip in the example?
How do we decide between two alternatives?
How do we calculate this?
Describe a decision you made recently that you used this principle of calculating decision making.
Would the marginal benefits outweigh the marginal costs of studying an extra hour or going to bed for you? Explain your reasoning.
What do Levitt and Dubner mean in their quote from Freakonomics?
How does the government use negative incentives?
How does Adam Smith answer the first question in principle 5?
How can you argue that a market can exist in cyberspace?
Give an example of the invisible hand.
How does Hazlitt differentiate between the good economist and the bad economist?
Give an example of the law of unintended consequences.
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