Fundamentals of Economics & Microeconomics

Mervyn is studying microeconomics in his college course. What is microeconomics?

• The study of individual people, households, and businesses making decisions about buying and selling goods and services.

• The study of the economy as a whole, focusing on large-scale economic factors.

• An economic system where private individuals own and control businesses.

• A measure of how much the quantity demanded or supplied of a good responds to changes in price.

Tiffany is studying economics in her college class. One day, her professor asks the class, "What is macroeconomics?"

• The study of individual people, households, and businesses making decisions.

• The study of the economy as a whole, focusing on large-scale economic factors.

• An economic system where private individuals own and control businesses.

• The limited availability of resources.

Who is Adam Smith?

• An economist known as the 'Father of Economics'.

• A concept from Adam Smith that suggests people seeking personal gain.

• A tax placed on imported goods.

• A market structure where numerous firms offer identical products.

Hoang is trying to understand the concept of capitalism for his economics class. What is capitalism?

• An economic system where private individuals own and control businesses.

• The amount of a product or service that buyers are able to purchase.

• The point where supply and demand meet.

• The limited availability of resources.

Giang is planning to sell handmade crafts at a local market. What does supply refer to in this context?

• The amount of a product or service that sellers are able and willing to offer.

• The amount of a product or service that buyers are able to purchase.

• The point where supply and demand meet.

• The limited availability of resources.

Hieu is planning to open a lemonade stand. What does demand refer to?

• The amount of lemonade that customers are able and willing to purchase.

• The amount of lemonade that Hieu is able to make and sell.

• The point where Hieu's lemonade supply meets customer demand.

• The limited availability of lemons and sugar for making lemonade.

Huy is trying to understand equilibrium. What is equilibrium?

• The point where supply and demand meet.

• The limited availability of resources.

• The additional satisfaction received from consuming one more unit.

• The value of the next best alternative that is foregone.

Tiffany is planning a party and has to decide how many snacks to buy. What is scarcity?

• The limited availability of resources.

• The amount of a product or service that buyers are able to purchase.

• The point where supply and demand meet.

• The additional satisfaction received from consuming one more unit.

Cameron is planning to buy a new video game. What is the law of demand?

• As the price goes up, people are less willing to buy.

• As the price goes down, sellers are less willing to offer.

• The amount of a product that buyers are willing to purchase.

• The amount of a product that sellers are willing to offer.

Hoang is selling handmade jewelry at a local market. What is the law of supply?

• As the price goes up, sellers are more willing to offer.

• As the price goes down, buyers are less willing to purchase.

• The amount of a product that buyers are willing to purchase.

• The amount of a product that sellers are willing to offer.