Podcast
Questions and Answers
What does the term 'opportunity cost' refer to in economics?
What does the term 'opportunity cost' refer to in economics?
Which of the following is NOT considered a factor of production in economics?
Which of the following is NOT considered a factor of production in economics?
Which of the following best describes a market economy?
Which of the following best describes a market economy?
Which of the following is a characteristic of a monopolistic market structure?
Which of the following is a characteristic of a monopolistic market structure?
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Which of the following is a branch of economics?
Which of the following is a branch of economics?
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What is the primary goal of an economic system?
What is the primary goal of an economic system?
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Which of the following is NOT one of the factors of production?
Which of the following is NOT one of the factors of production?
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What is the main difference between microeconomics and macroeconomics?
What is the main difference between microeconomics and macroeconomics?
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Which of the following is the best example of a command economy?
Which of the following is the best example of a command economy?
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What is the primary role of the entrepreneur in a market economy?
What is the primary role of the entrepreneur in a market economy?
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Study Notes
Market Organized Forms
- A form of market where buyers and sellers meet at a specific time and place, e.g. traditional markets.
- A form of market where buyers and sellers do not meet at a specific time and place, e.g. online markets.
Market Structure
- Pure (perfect) Competition: many products, many buyers, many sellers.
- Monopoly: one unique product, one seller, many buyers.
- Monopolistic Competition: one unique product, many sellers, many buyers.
- Oligopoly: one unique product, few sellers, many buyers.
Economic Systems
- An economic system is a means of organizing and distributing resources, services, and goods across a geographic region or country.
- Traditional Economy: driven by time-honored beliefs, customs, culture, and traditions, relies mostly on agriculture, gathering, hunting, and fishing.
- Market (Capitalism) Economy: characterized by private ownership and control of most resources, relies on market decisions with little or no government intervention, price depends on supply and demand.
Resource Allocation
- The price of a commodity depends on the seller's willingness to sell and the buyer's willingness to pay.
- Resources are allocated to maximize production output.
- Managers and supervisors develop policies to maximize resource utilization.
- The combination of Land, Labor, Capital, and Entrepreneur/Entrepreneurship leads to production.
Scarcity and Applied Economics
- Scarcity: a physical condition where the quantity desired of a resource exceeds the available quantity.
- Applied Economics: application of economic theory to real-world situations to predict outcomes and evaluate risks.
- Helps companies, businesses, and governments take measures to ensure stability based on numbers and trends.
The Economic Problem and Basic Economic Questions
- Every nation experiences economic problems due to scarcity and limited resources.
- Basic Economic Questions:
- What to produce?
- How to produce?
- For whom to produce?
- The answers depend on consumer demand to avoid wastage.
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Description
Test your knowledge on different forms of markets and market structures with this quiz. Learn about organized and less organized markets, as well as market structures like pure competition, monopoly, and monopolistic competition.
