30 Questions
What is the reward for the use of capital?
Interest
In a traditional economy, who primarily owns and produces goods?
Households
What does opportunity cost refer to?
The value of what is given up
Which factor of production refers to the reduction of productivity of capital?
Capital
What is a key characteristic of a market economy or capitalism?
Decisions are made by individuals
Which economic system involves a mix of market and command systems?
Mixed Economy
What is the primary focus of microeconomics?
Studying the behavior of individuals and firms in decision-making
Which theory in microeconomics involves consumers aiming to maximize happiness by choosing a mix of goods within their budget?
Utility theory
What is the goal of producers in the production theory of microeconomics?
Minimize costs and maximize profits
Which type of microeconomics deals with describing economic phenomena without opinions, focusing on facts and objective analysis?
Positive Microeconomics
In perfect competition, what aligns to establish economic equilibrium?
Prices
Which branch of economics involves subjective judgments and opinions about how things should be or what ought to happen in the economy?
Normative economics
What is economics primarily concerned with?
Balancing the demand for goods and services with their limited availability
Who is considered the 'Father of Economics'?
Adam Smith
What does the term 'Wealth' refer to in economics?
Anything with economic value
Which of the following is NOT one of the 3 Es in economics?
Excellence
What does the term 'Consumption' refer to in economics?
Utilization or usage of goods and services by consumers
What are the four basic economic questions that need to be addressed?
What to Produce, How to Produce, How much to Produce, For whom to produce
What does macroeconomics study?
Relationships among broad economic aggregates
How is national output related to income?
National output generates equivalent income
What measures unemployment?
Percentage of jobless individuals
What is deflation?
Decrease in prices of goods and services
Which sector does macroeconomics NOT focus on?
Individual stock market investments
What do macroeconomic policies aim to achieve?
Job creation, wealth, and improved living standards
What is the main function of monetary policy?
Regulating the money supply in an economy
Why does the demand curve generally slope downwards?
As prices fall, consumers substitute for other goods
What does the Y-axis represent on a demand curve graph?
Price of the products
What is the purpose of a demand schedule?
To illustrate factors affecting demand
Which factor does NOT influence demand according to the text?
Government revenue generation
What does the law of demand state?
Quantity demanded increases as price decreases
Learn about the fundamental concept of scarcity in economics, which refers to limited resources versus unlimited wants. Explore how scarcity influences economic decision-making and resource management.
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