Microeconomics Review

The study of economics, is the study of making

• choices

• money

• legislation

• business

We must make choices because we live in a world of limited resources and unlimited wants/needs. This is known as

• shortage

• surplus

• scarcity

• cost-benefit analysis

Opportunity cost refers to

• what you give up when choosing what you did choose

• the total cost of production

• the price of an opportunity taken

• what you chose from two possible options

Cattle would be considered which factor of production?

• land

• labor

• capital

• entrepreneurship

Labor refers to any human worker, as opposed to entrepreneurs, who are

• considered capital

• unemployed

• workers who do not perform manual labor

• risk takers who start their own business

Something produced to produce something else would be considered

• land

• labor

• capital

• entrepreneurship

An example of capital would be

• a tractor

• farmland

• a factory worker

• oil fields

The market price is

• the most acceptable price

• where shortages exist

• where there is a mild surplus

• where supply and demand agree

demand curves go in which direction, from left to right?

• downward

• upward

• horizontal

• vertical

supply curves go in which direction, from left to right?

• downward

• upward

• horizontal

• vertical