Chapter 1 Five Foundations of Economics Page 15 hat are five

Chapter 1: Five Foundations of Economics Page 15 hat are five foundations of economics? A football game between the Thunder and the Sharks is in its closing minutes, with the Thunder ahead by 20 points. The Thunder\'s coach considers sending in the second-string quarterback. This would reduce the risk of the star quarterback getting injured, but the second-string quarterback is not very good. Complete the passage describing the coach\'s decision in economic terms. Drag word(s) below to fill in the blank(s) in the passage. The coach is weighing a slightly risk of losing against a slightly decreased risk of injury to the star quarterback. This weighing of is an because the star quarterback was in for most of the game, shifts in probabilities with the game le of and the coach\'s decision concerns nearly over. 800 large trade-offs increased small marginal thinking incentives decreased

Solution

Increased

Trade-off

Marginal thinking

Small

The coach is weighing the case of winning the game against the case of saving the players from injuries. It is taking place on the basis of economic principles. On the basis of trade-off and associated risk level, the coach will take the decision.