Podcast
Questions and Answers
What defines scarcity in economics?
What defines scarcity in economics?
- The ability to produce excess of all goods
- The complete availability of resources for all uses
- Resources allocated without alternative uses
- Resources being limited and not sufficient for all demands (correct)
Which of the following is NOT a factor contributing to inflation?
Which of the following is NOT a factor contributing to inflation?
- Technological advancement (correct)
- Reduced supply of goods
- Increased external demand
- Economic problems facing the economy
Which branch of economics primarily focuses on unemployment and national economic growth?
Which branch of economics primarily focuses on unemployment and national economic growth?
- Microeconomics
- Macroeconomics (correct)
- Behavioral economics
- Ecological economics
What does the Production Possibility Curve (PPC) illustrate?
What does the Production Possibility Curve (PPC) illustrate?
What is the opportunity cost of choosing to produce more rice according to the Production Possibility Curve?
What is the opportunity cost of choosing to produce more rice according to the Production Possibility Curve?
What do points on the production possibility curve indicate?
What do points on the production possibility curve indicate?
What does a point located inside the production possibility curve signify?
What does a point located inside the production possibility curve signify?
What characteristic is associated with the negative slope of the production possibility frontier (PPF)?
What characteristic is associated with the negative slope of the production possibility frontier (PPF)?
Why are points outside the production possibility curve considered undesirable?
Why are points outside the production possibility curve considered undesirable?
How does the production possibility curve illustrate the concept of opportunity cost?
How does the production possibility curve illustrate the concept of opportunity cost?
Flashcards
Inflation
Inflation
The continuous and sustained increase in the overall price level.
Scarcity
Scarcity
Limited resources are not enough for all uses.
Opportunity Cost
Opportunity Cost
The value of the next best alternative that is forgone when making a choice.
Production Possibility Curve
Production Possibility Curve
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Microeconomics
Microeconomics
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Production Possibility Curve (PPC)
Production Possibility Curve (PPC)
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Points on the PPC
Points on the PPC
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Points inside the PPC
Points inside the PPC
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Points outside the PPC
Points outside the PPC
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Opportunity Cost in the PPC
Opportunity Cost in the PPC
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