Introduction of Microeconomics

The fact that human wants cannot be fully satisfied with available resources is called problem of __________________.

• scarcity

• choices.

• opportunity cost.

• none of the above.

All the following are the Basic Economic Problems EXCEPT ________________.

• What product should be produce?

• Where product should be produce?

• For whom product should be produce?

• How product should be produce?

Economics is the study of how __________________________.

• we choose to use unlimited resources.

• unlimited resources are used to satisfy scarce wants.

• society uses abundant resources to satisfy unlimited desires.

• scarce resources are used to satisfy unlimited wants.

In order to save cost, the “Milk Industry” should use more labour than machine. This statement refers to ______________.

• What product should be produce?

• Where product should be produce?

• For whom product should be produce?

• How product should be produce?

The concept of opportunity cost is based upon the principle of ___________.

• need

• consumption

• scarcity

• profit

Macroeconomis could be defined as ...

• the part of economics concerned with large-scale or general economic factors and policies that affected millions of people.

• is the study of what is likely to happen (tendencies) when individuals make choices in response to changes in incentives, prices, resources, and/or methods of production.

Microeconomics can be defined as ...

• the part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.

• the study of what is likely to happen (tendencies) when individuals make choices in response to changes in incentives, prices, resources, and/or methods of production.

Problem of ____________ occurs when goods and services are limited compared to man’s unlimited want and desires.

• surplus

• scarcity

• choices

• opportunity cost

Opportunity cost is defined as ________________.

• human wants are always greater than the available resources.

• second best alternative that has to forgo for another choice which gives more satisfaction.

• a study of how people use their limited resources to satisfy their unlimited needs and desires.

• an individual, firm and government make decisions to choose from many alternatives.

Wants are

• Things you essential for survival

• Food, clothing, shelter

• Desires that are not essential to survive

• Air, water, food