FREE ECONOMICS AND STUDY GAMES ABOUT

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FREE ECONOMICS AND STUDY GAMES ABOUT

MICROECONOMICS EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -21 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: productivity

Answer:

the quantity of goods and services produced from each unit of labor input

Question 2: property rights

Answer:

the ability of an individual to own and exercise control over scarce resources

Question 3: rational people

Answer:

people who systematically and purposefully do the best they can to achieve their objectives

Question 4: equality

Answer:

the property of distributing economic property uniformly among the members of society

Question 5: economics

Answer:

the study of how society manages its scarce resources

Question 6: externality

Answer:

the impact of one person's actions on the well-being of a bystander

Question 7: positive statements

Answer:

claims that attempt to describe the world as it is

Question 8: market failure

Answer:

a situation in which a market left on its own fails to allocate resources efficiently

Question 9: production possibilities frontier

Answer:

a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology

Question 10: macroeconomics

Answer:

the study of economywide phenomena, including inflation, unemployment, and economic growth

Question 11: market power

Answer:

the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices

Question 12: business cycle

Answer:

fluctuations in economic activity, such as employment and production

Question 13: scarcity

Answer:

the limited nature of society's resources

Question 14: efficiency

Answer:

the property of society getting the most it can from its scarce resources

Question 15: microeconomics

Answer:

the study of how households and firms make decisions and how they interact in markets

Question 16: incentive

Answer:

something that induces a person to act

Question 17: opportunity cost

Answer:

whatever must be given up to obtain some item

Question 18: inflation

Answer:

an increase in the overall level of prices in the economy

Question 19: market economy

Answer:

an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services

Question 20: marginal change

Answer:

a small incremental adjustment to a plan of action

Question 21: normative statements

Answer:

claims that attempt to prescribe how the world should be