Can anyone suggest answers about <ten principles of economics>?

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1.Why should policymakers think about incentives?
2.Why isn't trade among countries like a game with some winners and some losers?
3.What does the "invisible hand" of the marketplace do?
4.What is inflation, and what causes it?
5.How are inflation and unemployment related in the short run?
 
1. people respond to incentives. take bicycles. if the price of bicycles rises, what will happen? Well, firms will produce more. Also, what happens if the price lowers, firms produce less. In short, prices are incentives and incentives determine the allocation of our scarce resources.

2. Trade is not like that because everyone can gain. Remember from the book, it says something to the effect of trade not being a win or loss game. in short- it's not a zero-sum game. Everyone can gain

3. This is an FYI section I think. HAHA. One of the colored boxes.

4. Inflation is the overall rise in prices. It is caused by printing too much money.

5/ In the short-run high inflation = lower unemployment and low inflation=high unemployment.
 
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