What is microeconomics?

Study of the economy at the market level

How a society organizes production and consumption

limited resources (land, capital, EA, and labor)

Which of the following is the correct order of the business cycle

Expansion, peak, recession, trough

What is a fixed cost?

Costs that do not change with the amount of output produced

What is the marginal benefit?

The additional benefit arising from a unit increase

What is comparative advantage?

The ability to produce a good or service at a lower opportunity cost

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ECON 2003 Vocab

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Questions 20

Answers

1
Which of the following is NOT a determinant of demand
Change of Price pf related good
Change in taste or preference
Change in income
Change in technology
2
Which of the following market structures relies heavily on advertising
Monopolistic Competition
Perfect competition
Oligopoly
Monopoly
3
Intermediate goods are incuded in GDP
False
True
4
What is microeconomics?
Study of the economy at the market level
Study of the economy at a large scale
5
What is an economy ?
The study of individual markets
How a society organizes production and consumption
Government allocate different tax revenues to meet the needs of society
study of the economy on a large scale
6
Discouraged workers are included in the Labor Force
False
True
7
What is scarcity?
limited resources (land, capital, EA, and labor)
limited suppliers
limited consumer choice
limited consumer income
8
What is the decison rule?
MB\le MC
MB\ge MC
MB<MC
9
Which of the following is the correct order of the business cycle
Expansion, peak, recession, trough
Recession, trough, expansion, peak
Expansion, trough, peak, recession
Expansion, recession, expansion, recession
10
What is the Law of Demand?
Price increases, Qd decreases
Price increases, D decreases
Price increases, D increases
Price increases, Qd increases
11
What is the equation for Elasticity?
\frac{\%ΔQd}{\%ΔP}
\frac{P_2-P_1}{P_1}\times100
Correct answer not given
\frac{Q_2-Q_1}{Q_1}\times100
12
What is a fixed cost?
Costs that do not change with the amount of output produced
The value of the next-best forgone alternative
Costs that change with the amount of output produced
13
What is the equation for Economic Profit?
TP/L
TFC + TVC
TR - Explicit costs
TR - Economic Costs
14
What two markets are in the business flow diagram?
Resource and Product Markets
Firm and Product Market
Resource Market and Household Market
Firm and Household Markets
15
As inflation increases, consumer purchasing power decreases
False
True
16
What is the Law of Supply?
Price increases, S increases
Price increases, Qs decreases
Price does not affect Qs
Price increases, Qs increases
17
Which of the following is NOT a price setter
Oligopoly
Monopoly
Perfect Competition
Monopolistic Competition
18
What is the marginal benefit?
The additional utility from a unit increase in a particular activity
The additional cost of producing one additional unit
The additional benefit arising from a unit increase
19
Macroeconomics is the study of the economy on a large scale
False
True
20
What is comparative advantage?
The ability to produce a good or service at a lower opportunity cost
The ability to produce a good or service at a higher opportunity cost

ECON 2003 Vocab Flashcards | StudBud