Microeconomics
(Advanced) current edition questions and approved
answers
Define "economics". - ✔✔✔the study of how people use scarce resources
Define "opportunity cost". - ✔✔✔what is given up to get something else
What are the three core choices in the economy? - ✔✔✔what, how, and for whom
Define "economy". - ✔✔✔the grand sum of all production and consumption activities
Define "microeconomics". - ✔✔✔behavior and goals of individual market participants
Give the basic definition of economics. - ✔✔✔the scarcity of resources
What is the equation for opportunity cost? - ✔✔✔what you give up divided by what you get
Who is the grandfather of economics and supports laissez faire economy? - ✔✔✔Adam
Smith
@ pg. 1
, Who is the father of modern Communism? - ✔✔✔Karl Marx
Who supports the mixed economy? - ✔✔✔John Maynard Keynes
Define "gross domestic product (GDP)". - ✔✔✔the total market value of all the goods and
services a nation produces in a year
Define "scarcity". - ✔✔✔the limitation of a nation's resources
What are the four basic factors of production? - ✔✔✔land, labor, capital, and
entrepreneurship
Define "economics". - ✔✔✔the study of how people use scarce resources
Define "opportunity cost". - ✔✔✔what is given up to get something else
What does the law of increasing opportunity cost state? - ✔✔✔We must give up ever-
increasing quantities of other goods and services in order to get more of a particular good.
Define "efficiency". - ✔✔✔squeezing maximum output out of available resources
Are output combinations outside of the production possibilities curve attainable or
unattainable? - ✔✔✔unattainable
What type of economy do conservatives support? - ✔✔✔laissez faire (resist work place
regulation, price controls, and minimum wage)
@ pg. 2
(Advanced) current edition questions and approved
answers
Define "economics". - ✔✔✔the study of how people use scarce resources
Define "opportunity cost". - ✔✔✔what is given up to get something else
What are the three core choices in the economy? - ✔✔✔what, how, and for whom
Define "economy". - ✔✔✔the grand sum of all production and consumption activities
Define "microeconomics". - ✔✔✔behavior and goals of individual market participants
Give the basic definition of economics. - ✔✔✔the scarcity of resources
What is the equation for opportunity cost? - ✔✔✔what you give up divided by what you get
Who is the grandfather of economics and supports laissez faire economy? - ✔✔✔Adam
Smith
@ pg. 1
, Who is the father of modern Communism? - ✔✔✔Karl Marx
Who supports the mixed economy? - ✔✔✔John Maynard Keynes
Define "gross domestic product (GDP)". - ✔✔✔the total market value of all the goods and
services a nation produces in a year
Define "scarcity". - ✔✔✔the limitation of a nation's resources
What are the four basic factors of production? - ✔✔✔land, labor, capital, and
entrepreneurship
Define "economics". - ✔✔✔the study of how people use scarce resources
Define "opportunity cost". - ✔✔✔what is given up to get something else
What does the law of increasing opportunity cost state? - ✔✔✔We must give up ever-
increasing quantities of other goods and services in order to get more of a particular good.
Define "efficiency". - ✔✔✔squeezing maximum output out of available resources
Are output combinations outside of the production possibilities curve attainable or
unattainable? - ✔✔✔unattainable
What type of economy do conservatives support? - ✔✔✔laissez faire (resist work place
regulation, price controls, and minimum wage)
@ pg. 2
