Introduction to Economics I

What is economics primarily concerned with?

• History and culture

• Satisfying unlimited needs and wants

• Environmental sustainability

• Political ideologies

What is the focus of microeconomics?

• Studying the behavior of entire economies

• Analyzing the production, distribution, and consumption of goods and services

• Examining the decisions of individuals and companies in allocating scarce resources

• Investigating global economic trends

Which of the following is an example of macroeconomics?

• A local clothing boutique deciding what clothes to sell for the season

• A high school student choosing a career based on income

• Analyzing the unemployment rate of a country

• Studying consumer preferences in a specific market segment

What are needs in economics?

• Things that are essential for survival

• Things that add comfort and pleasure to life

• Material goods produced by society

• Activities consumed at the same time they are produced

Which of the following is NOT a factor of production?

• Land

• Labor

• Money

• Capital

What is the economic term used to describe the inputs used in producing goods or

• Consumption

• Demand

• Factors of production

• Market equilibrium

What is the fundamental economic problem?

• Unlimited resources and limited wants

• Scarcity of resources relative to unlimited wants and needs

• Abundance of resources but limited demand

• Overproduction of goods and services

Which economic system relies on centralized government control?

• Command economy

• Market economy

• Mixed economy

• Traditional economy

What is the relationship between supply and demand?

• Directly proportional

• Inversely proportional

• Unrelated

• Cyclical

What does the equilibrium price represent?

• The highest price consumers are willing to pay

• The lowest price suppliers are willing to accept

• The point where supply equals demand

• The maximum price set by the government