Lecture 1_Micro

What is the study of how people allocate scarce resources?

• Economics

• Anthropology

• Psychology

• Sociology

Which term describes the total value of all goods and services produced in a country?

• Balance of Trade (BOT)

• Consumer Price Index (CPI)

• Net National Product (NNP)

• Gross Domestic Product (GDP)

What is the term for the price at which quantity supplied equals quantity demanded?

• Equilibrium price

• Supply price

• Demand price

• Market price

Which economic principle states that as the price of a good increases, the quantity demanded decreases?

• Law of Supply

• Price Elasticity of Demand

• Law of Demand

• Marginal Utility

What do we call a market structure with many firms competing against each other?

• Oligopoly

• Perfect competition

• Duopoly

• Monopoly

What is the term for the cost of the next best alternative foregone?

• Opportunity cost

• Sunk cost

• Marginal cost

• Fixed cost

What is the economic term for a situation where demand exceeds supply?

• Equilibrium

• Deficit

• Shortage

• Surplus

What is the term for government payments to individuals or businesses?

• Loans

• Tax breaks

• Subsidies

• Grants

What do we call the economic system where the means of production are privately owned?

• Capitalism

• Feudalism

• Communism

• Socialism

What is the term for a market dominated by a single seller?

• Duopoly

• Oligopoly

• Cartel

• Monopoly