Knowledge Check

What does scarcity refer to?

• Unlimited resources

• Limited resources

• Abundance of goods

• High demand

Microeconomics primarily studies:

• The economy as a whole

• Individual consumers and firms

• Global trade

• Government policies

Which of the following is a key focus of macroeconomics?

• Consumer choices

• Market structures

• National unemployment rates

• Pricing strategies

Opportunity cost is defined as:

• The cost of production

• The next best alternative that is given up

• The total cost incurred

• The benefits of a decision

A normative statement is:

• Based on facts

• opinion-based

• Measurable and testable

• Always true

Which of the following is an example of a positive statement?

• The government should increase taxes.

• Unemployment rates are currently at 5%.

• Inflation is bad for the economy.

• The minimum wage should be raised.

Give an example of a normative statement related to economics.

Can you give an example of a rival good?