LESSON 1. ECONOMICS AND THE ECONOMY

What does point Y mean?

• wasting resources point

• unattainable point

• profitable point

What does point X mean?

• wasting resources point

• unattainable point

• profitable point

How many types of economy?

• 3

• 4

• 5

The economy in which the government and private sector jointly solve economic problems is called ____________.

• Command economy

• Free market economy

• Mixed economy

The economy in which the government fully controls the market is called ____________.

• Command economy

• Free market economy

• Mixed economy

The economy in which the government cannot intervene market but the invisible hand controls is called ____________.

• Command economy

• Free market economy

• Mixed economy

A subject offers a detailed treatment of how individuals and firms make economic decisions is called ___________.

• Positive

• Normative

• Microeconomics

 __________ is the study of the economy as a system.

• Microeconomics

• Macroeconomics

• Positive

What should individuals do if marginal benefit is lower than marginal cost?

• individuals should do more of the activity

• individuals should do less of the activity

• individuals should do at the right amount of the activity

What should individuals do if marginal benefit is higher than marginal cost?

• individuals should do more of the activity

• individuals should do less of the activity

• individuals should do at the right amount of the activity