MICROeconomics 19 Minute Review

Mr. Clifford provides a comprehensive review of macroeconomics, covering key concepts such as scarcity, opportunity cost, economic systems, comparative advantage, supply and demand, elasticity, taxes, costs, perfect competition, monopolies, oligopolies, resource markets, and market failures. The video emphasizes understanding graphs and applying economic principles to real-world scenarios.

What is the primary focus of the production possibilities curve?

• To explain the circular flow of income

• To demonstrate the law of demand

• To illustrate the concept of scarcity

• To show the maximum possible output of two goods

In a command economy, who owns the resources?

• Non-profit organizations

• The government

• Corporations

• Individuals

What happens when a price ceiling is set below the equilibrium price?

• The demand curve shifts right

• A shortage occurs

• A surplus occurs

• The market reaches equilibrium

Which of the following describes a perfectly inelastic demand?

• Demand is perfectly elastic

• Demand changes significantly with price changes

• Demand does not change with price changes

• Demand changes slightly with price changes

What is the law of diminishing marginal returns?

• As more units of a variable input are added, total output decreases

• As more units of a variable input are added, total output increases at a decreasing rate

• As more units of a variable input are added, total output remains constant

• As more units of a variable input are added, total output increases at an increasing rate

In perfect competition, what is the relationship between price and marginal cost?

• Price is unrelated to marginal cost

• Price equals marginal cost

• Price is less than marginal cost

• Price is greater than marginal cost

What is a key characteristic of a monopoly?

• Many small firms

• Differentiated products

• High barriers to entry

• Price taker

In game theory, what is a Nash equilibrium?

• A situation where all players have a dominant strategy

• A situation where no player can benefit by changing strategies if others remain unchanged

• A strategy that is best regardless of what the opponent does

• A strategy that results in the highest payoff for all players

What is derived demand in the context of resource markets?

• Demand for resources based on government policies

• Demand for resources based on consumer preferences

• Demand for resources based on the demand for the products they produce

• Demand for resources based on their own market value

What is a public good characterized by?

• Non-excludability and rivalry

• Excludability and rivalry

• Non-excludability and non-rivalry

• Excludability and non-rivalry