Intro to Economics

Microeconomics or Macroeconomics?

​ A country's inflation rate rises. ​ (a)  

​

• Macroeconomics
• Microeconomics

Microeconomics or Macroeconomics?

A laid-off worker decides to start their own business. ​ (a)  

• Microeconomics
• Macroeconomics

Microeconomics or Macroeconomics?

Unemployment in a country declines for the third month in a row ​ (a)  

• Macroeconomics
• Microeconomics

Microeconomics or Macroeconomics?

A team of three partners decides to start a new ad agency. ​ (a)  

• Microeconomics
• Macroeconomics

​ (a)   are almost always limited even though our ​ (b)   are often unlimited. In this situation the condition of ​ (c)   exists, which forces us to ​ (d)  

• resources
• wants/needs
• scarcity
• make choices

Match the following

• Macroeconomics

• the study of how individuals and societies make choices in the face of scarce resources

• Microeconomics

• the study of the overall health and workings of an entire economy

• Economics

• the study of individual buyers and sellers in the economy

Because resources are scarce, all choices involve trade-offs, which means every choice has an opportunity cost.

• True

• False

Which description is true about Opportunity Cost?

• Everyone has the same opportunity cost in a situation

• It can be avoided if you have enough money

• It always exists when any choice is made

• It can only be expressed in terms of dollar value

George earns a $250 bonus at his job for increasing his output two weeks in a row. He makes a list of what he wants to buy with his bonus in order of preference: 1. the latest model of Adidas athletic shoes; 2. Air Pods; 3. a new coat. He buys the Adidas shoes. What is his opportunity cost?

• the Air Pods

• the shoes

• the coat

• the cash

Economics can be best described as the study of:

• Money

• Choices

• Graphing

• the Government