MODULE 1 - BASIC MICROECONOMICS

If a business’s demand for its product decreases, it might lower its prices to attract more customers.

What is scarcity in economic terms?

If the demand for a product increases while the supply remains constant, what typically happens to the price?

Opportunity cost is the amount of money spent on the chosen option.

For a partnership, what does opportunity cost help evaluate?

In a partnership, decisions about resource allocation involve trade-offs and prioritization.

Macroeconomics deals with topics like inflation, national income, and overall economic growth.

Microeconomics focuses on the study of individual entities, such as households, and their decision-making process.

Supply refers to the quantity of a good that consumers are willing and able to purchase at various prices.

Macroeconomics examines the effect of supply and demand on the prices of individual goods.

What happens if a corporation does not effectively manage its resources?

In the sole proprietorship example, which of the following is the example for scarcity and choice?

Which branch of Economics focuses on national income, inflation rates, and overall economic growth?

Corporations, like sole proprietorships and partnerships, also face scarcity and must make strategic choices.

How does Microeconomics differ from Macroeconomics?

Which principle helps a business determine whether to produce more or less of a product?

In a sole proprietorship, the owner’s decisions do not involve opportunity costs.

In a partnership, scarcity and choice involve decisions about how to allocate shared resources among different ventures.

In which type of business does the owner make all decisions and faces limited resources directly?

What is opportunity cost?