Check for Understanding: Mankiw's 10 Principles

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1. Question
Principle 5: Trade can make everyone better off. Which of the following best illustrates this principle?
- A country imposing high tariffs on imports to protect domestic industries.
- Two countries exchanging goods based on their comparative advantages.
- A monopolistic company increases prices to maximize its profits.
- A country implementing strict quotas on foreign investments.
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2. Question
Principle 3: Rational people think at the margin. What does “thinking at the margin” mean?
- Considering only the total cost of a decision.
- Evaluating the long-term consequences of a decision.
- Weighing the additional costs and benefits of a small change.
- Ignoring the potential incentives associated with a decision.
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3. Question
Principle 8: A country’s standard of living depends on its ability to produce goods and services. What does the standard of living refer to?
- The overall size of a country's economy.
- The level of government intervention in the economy.
- The average income and quality of life of a country's citizens.
- The stability of prices and inflation rates in a country.
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Principle 10: Society faces a short-run trade-off between inflation and unemployment. What does this principle imply?
- Inflation and unemployment are unrelated economic phenomena.
- Reducing inflation will always lead to higher unemployment rates.
- There is a direct trade-off between reducing inflation and reducing unemployment in the short run.
- Policies that reduce unemployment will always lead to higher inflation rates.
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5. Question
Which of the following principles best represents the concept of social interactions?
- Principle 9: Prices rise when the government prints too much money.
- Principle 3: Rational people think at the margin.
- Principle 7: Governments can sometimes improve market outcomes.
- Principle 4: People respond to incentives.
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Check for Understanding: Mankiw’s 10 Principles

Vérifier la compréhension : les 10 principes de Mankiw

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