Economic C1

What is Microeconomics?

• study of individuals, households and firms' behavior in decision making and allocation of resources

• study of how allocate money and manage tax rates, capital, resources

• the study of whole economies

• the branch of knowledge concerned with the production, consumption, and transfer of wealth.

Which of the following belongs to microeconomic topic?

• How high oil prices affect economic growth.

• The effect of  increased trade on unemployment.

• How a gas station changes its prices in response to a new competitor.

• The effect of monetary policy on inflation.

Which is one of four-factor in the production

• labor

•  money

• transportation

•  free block 

The opportunity cost of something you decide to get is

• The amount of money you pay to get it.

• The highest valued alternative you give up to get it

• The lowest valued alternative you give up to get it.

• All possible alternatives that you give up to get it.

What is the definition of scarcity? 

•  limited resources but unlimited wants

• short in supply

• a unique product

• supply surplus

Which of the following is not an economic question?

• What goods and services should be produced to meet consumer needs?

• how should they be produced?

•  Who should receive goods and services? 

• would supply meet demand? 

When supply does not meet demand, the price will

• increase 

• decrease 

• not change 

• crash 

Microeconomics is all about individuals, business, and governments decisions

• true

• false

Comparative advantage is used to seek for a lower opportunity cost.

• true

• false

which of these are an example of unlimited wants?

• shelter

• land

• time

• capital