MICRO

Question 1

_______ is the study of how people make choices under scarcity.

Answer 1

Economics

Question 2

______means that resources are limited. There are not enough resources available to
satisfy everyone’s wants

Answer 2

Scarcity

Question 3

What are the two fundamental concepts of economics: concerning choices and decision making

Answer 3

1.Opportunity cost
2. trade-off

Question 4

_______ refers to the value of the next best alternative that is forgone when making a decision.

Answer 4

Opportunity cost

Question 5

It is the cost of choosing one option over another.

Answer 5

Opportunity cost

Question 6

It involves making a decision that involves sacrificing one option for another.

Answer 6

trade-off

Question 7

_____refers to the act of giving up one thing in order to gain something else.

Answer 7

trade-off

Question 8

_______focuses on the value of the forgone alternative,

Answer 8

opportunity cost

Question 9

______emphasizes the act of making a choice and the consequences of that choice.

Answer 9

trade-off

Question 10

What are the Basic Problems of an Economy:

Answer 10

1. What to Produce and How much?
2. How to Produce?
3. For whom to Produce?

Question 11

4 Categories of Resources in Economics

Answer 11

1. Economic Resources
2. Natural Resources
3. Capital Resources
4. Human Resources

Question 12

3 types of economic system

Answer 12

1. traditional economy
2. command economy
3. market economy

Question 13

authorative, government

Answer 13

command economy

Question 14

market economy

Answer 14

most democratic

Question 15

a system that relies on customs, history, and time-honored beliefs.

Answer 15

traditional economy

Question 16

is one in which the central government plans, organizes, and controls all economic activities to maximize social welfare.

Answer 16

A command economy, also known as a planned economy,

Question 17

two types of scarcity

Answer 17

1. relative scarcity - unlimited resources
2. absolute scarcity - limited resources

Question 18

2 branches of economics

Answer 18

1. microeconomics
2. macroeconomics

Question 19

teacher name

Answer 19

Desirie Diaz

Question 20

Economists serve as advisers to policymakers, providing insights based on economic principles.

Answer 20

Role of Economists in Policy Making

Question 21

their recommendations may not always be followed due to political considerations and differing values among stakeholders

Answer 21

Role of Economists in Policy Making

Question 22

The Scientific Method Involves:

Answer 22

observation, developing a theory, and further observation to test that theory.

Question 23

Economics starts with a fundamental problem: ____.

Answer 23

scarcity

Question 24

True of False: Scarcity refers to the idea that resources are limited while human wants are unlimited

Answer 24

true

Question 25

True or False: Opportunity Cost is the benefit that is gained by choosing the next best alternative

Answer 25

false

Question 26

True or false: The budget constraint shows the different combinations of goods and services a person can afford given their income and the prices of those goods.

Answer 26

true

Question 27

True or false: If the price of good decreases, the budget constraint line shifts inwards

Answer 27

false

Question 28

true or false: The PPC shows different combinations of two goods that can be produced using all available resources efficiently

Answer 28

true

Question 29

true or false: Points outside the ppc curve represent efficient use of resources

Answer 29

false

Question 30

A mixed company combines elements of both a market based economy and government intervention

Answer 30

true

Question 31

In a capitalist system, the government controls most of the decision regarding the resources allocation

Answer 31

false

Question 32

The more of a good you consume, the less additional satisfaction each unit brings.

Answer 32

Diminishing Marginal Utility:

Question 33

Utility: The additional satisfaction from consuming one more unit of a good.

Answer 33

Marginal

Question 34

Thinking at the Margin:

Answer 34

Utility and Choice

Question 35

Scarcity affects prices

Answer 35

true

Question 36

When a good is scarce and there’s high demand,

Answer 36

its price tends to rise because people are willing to pay more for it

Question 37

when there’s plenty of a good,

Answer 37

prices tend to drop.

Question 38

The PPC illustrates the concept of opportunity cost

Answer 38

which is the value of the next best alternative foregone when choosing one option over another.

Question 39

Moving along the curve shows the

Answer 39

trade-offs between the two goods.

Question 40

_____ means that resources whether they are time, money, raw materials, or even skilled labor are finite.

Answer 40

Scarcity