Unit 1 Microeconomics

You are a student studying for your final exams. One of your subjects is economics. How would you describe this subject to your friend who is not familiar with it?

• It's about how individuals, businesses, and nations make choices on allocating resources to satisfy their wants and needs.

• It's about studying the extra benefit of adding an extra unit.

• It's about studying plants.

• It's about studying oligopoly and how it affects the economy.

What is an example of a Want?

• Shoes

• Food

• Water

• Electricity

What is opportunity cost?

• The best financial decisions to make.

• The cost of not to or to buy something.

• When the change in demand because of price is large.

• Exchangeing one thing for the use of another.

You are planning to start a business and you are researching about the essential elements required to successfully run it. You come across a term 'factors of production'. What does it refer to?

• 1. Land

  2. Labor

  3. Entrepreneurship

  4. Capital

• Water

  Food

  Electricity

  Air

• Land

  Housing

  Government

  Revenue

• Income

  Wages

  Businesses

  Spending

You are a student studying economics and you come across a chapter that talks about the 4 types of economies. Can you identify them?

• Communism

  Socialism

  Democracy

  Monarchy

• Government

  State

  County

  Town

• Free Market

  Mixed

  Traditional

  Command

• Republic

  Traditonal

  Law of Demand

  Dictatorship

You are running a business and you notice that no matter how much the demand for your product increases or decreases, the price remains the same. What economic term describes this phenomenon?

• Factors of Demand

• Inelasticity of Demand

• Recession

• Elasticity of Demand

What are Incentivies?

• Rewards offered to to persuade people to take certain economic actions.

• When the change in demand because of price is large.

• The government taxes you highers

• They lower the government tax the higher the tax is.

In a country where the government controls some industries and allows private ownership in others, what type of economy is it?

• Use a barter/trade system

• Communism

• Combination of a command economy and a free market.

• When you have to give your paychecks to your elders.

What is a command economy?

• The government trades with you in order to run the economy.

• The government controls all businesses and productions.

• You have have the ability to buy or sell whatever you want.

• The government has a little bit of say but not all the say in the economy.

What is the concept of supply and demand in economics?

• It refers to the relationship between the quantity of a product that producers are willing to sell and the quantity that consumers are willing to buy at different prices.

• It refers to the relationship between the quantity of a product that consumers are willing to buy and the quantity that producers are willing to sell at different prices.

• It refers to the relationship between the quantity of a product that producers are willing to sell and the quantity that consumers are willing to buy at the same price.

• It refers to the relationship between the quantity of a product that consumers are willing to buy and the quantity that producers are willing to sell at the same price.