St. Agnes Academy

ECON 1

Chapter 1

1)Explain the idea of tradeoff and think of three tradeoffs you have made today.

2. Explain what economists mean by rational choice and think of three choices you’ve made today that are rational.

3. Explain why opportunity cost is the best forgone alternative and provide examples of some opportunity costs you have faced today.

4. Explain what it means to choose at the margin and illustrate with three choices at the margin you have made today.

5. Explain why choices respond to the incentives and think of three incentives which you have responded today.

6. Distinguish between a positive statement and a normative statement and provide examples.