Introductory Microeconomics Quiz

An economy is a system that provides people with the means to work and earn their living.

The central problems of an economy are what to produce, how to produce, and for whom to produce. Additionally, it involves concepts of production possibility frontier and opportunity cost.

Microeconomics studies individual economic units or small groups, such as demand, supply, equilibrium price, and market, while macroeconomics studies the entire economy, including national income, government budget, balance of payments, and foreign exchange rates.

<p>Economic activity refers to activities meant for economic or monetary benefit, such as consumption, production, investment, and exchange.</p> Signup and view all the answers

<p>Consumption is using up the utility of goods and services, such as eating a meal or seeking treatment from a doctor.</p> Signup and view all the answers