Microeconomics

What is economics?

Microeconomics deals with

• Government intervention

• individual choice

• All of the above

Take an action if and only if the extra benefits are at least as great as the extra costs. This represents the

• Cost Benefit Principle

• Opportunity Cost

• Scarcity Principle

What is Demand?

Name 3 factors that determine demand

The law of demand says

• the higher the price the greater the demand

• the lower the price the greater the demand

• none of the above

Name two factors that causes a shift to the right in the demand curve.

Name two factors that cause the demand to shift to the left.

What does a movement up the demand curve means?

What is a downward movement on the demand curve means?