Exploring Economics
Eighth Edition
Learning Objectives
- Define and explain the concept of opportunity cost.
- Explain the importance of marginal thinking in economics.
- Discuss why people respond predictably to changes in incentives.
- Describe why specialization and trade are so important to economic growth.
- Explain how markets can improve economic efficiency.
- Describe how government policies can improve economic outcomes.
- Explain how government policies may stabilize the economy.
- Discuss how increasing productivity leads to higher economic growth.