Economics Quiz P1 Q1 G9

What is the meaning of economics?

• The study of how to efficiently allocate resources

• The study of household management

• The study of scarcity and shortage

• The study of trade-offs and opportunity cost

What are the four basic economic questions?

• What to produce? How to produce? How much to produce? For whom to produce?

• What to buy? How to buy? How much to buy? For whom to buy?

• What to sell? How to sell? How much to sell? For whom to sell?

• What to consume? How to consume? How much to consume? For whom to consume?

What is the concept of trade-off?

• Sacrificing one thing to get more of another

• The associated loss after sacrificing something

• Encouraging specific behaviors and choices

• Examining additional benefits and costs before deciding

What is the concept of opportunity cost?

• Sacrificing one thing to get more of another

• The associated loss after sacrificing something

• Encouraging specific behaviors and choices

• Examining additional benefits and costs before deciding

What is the concept of incentives in economics?

• Sacrificing one thing to get more of another

• The associated loss after sacrificing something

• Encouraging specific behaviors and choices

• Examining additional benefits and costs before deciding

What is the concept of thinking at the margin?

• Sacrificing one thing to get more of another

• The associated loss after sacrificing something

• Encouraging specific behaviors and choices

• Examining additional benefits and costs before deciding

What is microeconomics?

• The study of how to efficiently allocate resources

• The study of household management

• The study of individual firms and consumers

• The study of the economy as a whole

What is macroeconomics?

• The study of how to efficiently allocate resources

• The study of household management

• The study of individual firms and consumers

• The study of the economy as a whole

What is scarcity?

• The decline in available natural resources

• A temporary lack of supply of resources or products

• The limitations of goods, services, time, or abilities

• The maximum combination of products an economy can produce

What is shortage?

• The decline in available natural resources

• A temporary lack of supply of resources or products

• The limitations of goods, services, time, or abilities

• The maximum combination of products an economy can produce