Introduction to Microeconomics

Front

What is microeconomics?

Back

Microeconomics is the branch of economics that studies individual agents and markets.

Front

Who was Adam Smith? What landmark book did he publish in 1776?

Back

Adam Smith was a Scottish economist and philosopher, known for his book 'The Wealth of Nations'.

Front

What is capitalism?

Back

Capitalism is an economic system characterized by private ownership of the means of production.

Front

What is supply (in economics)?

Back

Supply is the total amount of a good or service available for purchase.

Front

What is demand (in economics)?

Back

Demand is the desire of consumers to purchase goods and services.

Front

What is equilibrium (in economics)?

Back

Equilibrium is the point where supply equals demand.

Front

What is scarcity?

Back

Scarcity refers to the limited availability of resources to meet unlimited wants.

Front

What is the law of demand?

Back

The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded increases.

Front

What is the law of supply?

Back

The law of supply states that, all else being equal, as the price of a good increases, the quantity supplied increases.

Front

What is the Invisible Hand (in economics)?

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The Invisible Hand is a metaphor for the unseen forces that move the free market economy.