Microeconomics Quiz #1

What is the study of production, distribution, and consumption of goods and services?

• Economics

• Macroeconomics

• Microeconomics

• Entrepreneurial Ability

What is the potential loss from a missed opportunity?

• Incentives

• Opportunity Cost

• Purposeful Behavior to increase Utility

• Marginal Costs

What is the change in total production cost that comes from making or producing one additional unit?

• Marginal Costs

• Marginal Benefits

• Normative economics

• Supply and Demand

Which economic statement involves value judgments?

• Positive economics

• Normative economics

• Microeconomics

• Macroeconomics

What is the graphical delineation of all possible combinations of two commodities that can be bought with provided income?

• The Consumer’s Budget Line

• The Commodities Line

• Attainable Combinations

• Unattainable Combinations

Which system has a mix of freedom with some government control?

• The Market System

• The Command System

• Specialization

• Laissez-Faire Capitalism

What is the flow of goods, services, and money in the circular flow model?

• Households

• Product Market

• Resource Market

• Businesses

What is the term for individuals pursuing self-interest unintentionally benefiting society as a whole?

• Efficiency

• Incentives

• Freedom

• The Invisible Hand