2.1 Microeconomics and macroeconomics

Economic problem arises due to

• limited resources

• unlimited wants

• alternative uses of resources

• all of the above

Economists maintain that _____ is central to the actions of individuals, families and companies.

• innovation

• inflation

• marginal cost

• scarcity

When deciding to buy a home instead of renting an apartment, you are demonstrating that the extra expense is worth the amount of _______.

• untility

• scarcity

• marginal cost

• risk

Who influences the total output of the Chinese economy?

• The Chinese government

• Chinese firms and the Chinese government

• Chinese households and Chinese firms

• Chinese households, Chinese firms, and the Chinese government

Which topic is not studied in microeconomics?

• Economic growth

• Monopoly and competition

• Price elasticity of demand

• Production possibility curves

Which option is not studied in macroeconomics?

• The consequences of a higher interest rate

• The effects of a lower exchange rate

• The impacts of price changes in the market of smartphones

• The impacts of progressive taxation