Economics Quiz

Define Economics:

Distinguish between microeconomics and macroeconomics:

Distinguish between normative and positive questions/statements:

Explain Economic methodology in your own words:

Define the production possibilities frontier and calculate opportunity cost.

Explain why PPF usually bows outwardly.

Distinguish between production possibilities and preferences, distinguish between production efficiency and allocation efficiency.

Define and Distinguish absolute and comparative advantages, explain how specialization and trade expand our production possibilities.

Explain the law of demand and the law of supply.

Explain the consumer’s optimal decision rule.