Chapter 1

As microeconomics are concerned with the allocation of scarce resources, there are implications on

Normative statements focuses on value judgement and are prescriptive

Allocative efficiency means production which gives consumers minimum satisfaction

In economics studies, “marginal” means “extra”

Assumptions of Production Possibilities Curve are

In command economy, there is no government intervention.

Microeconomics concern about_______

Shifting outwards of PPC happens when

________a situation in which a good or service is unavailable; unlike scarcity, this may be short term or long term

Economics is concerned with how individuals, institutions, and society allocate ________

Goods are scare and wants are finite and hence people need to make choices.

Microeconomics is the study of economic actions of individuals and small groups of individuals.

_______limited resources relative to unlimited needs and wants.

Positive statements focuses on facts

Opportunity cost ______because resources are not equally adaptable to alternative productions.

Free market economy focuses on

Resources are also called as factors of production.

Productive efficiency means production at the minimum cost

A production possibilities curve (PPC) shows different combinations of maximum goods and services a society can produce.

Why we need to make sure that resources must be fully utilized

The followings are factors of production except

something like air, food, or shelter that is necessary for survival

defines as 'the next best thing alternative foregone when an economic decision is made'