Basic Economic Concepts

Microeconomics is the study of:

• stock markets

• the economy as a whole

• how to manage money

• individuals and their decisions

Opportunity cost is about money, not about the general use of resources.

• True

• False

Communism says that the means of production are directly owned by:

• the president

• the state

• the citizens

• the government

The Law of Supply states that:

• As the price goes down, less will be supplied

• As the price rises, more will be supplied

• As the price rises, less will be demanded & the opportunity cost of the purchase increases

CIP: Consumer Price Index is the change in prices over a period of time

• True

• False