5 Questions
What does microeconomics study?
Individuals
Which type of economics involves examining total output and aggregate measures of the economy?
Macro
What is opportunity cost?
The value of the opportunity that you gave up when you choose one activity
Which concept is used to produce income?
Factors of production
When is it advisable to continue with an activity according to the principle of MC vs. MB?
$MB \geq MC$
Study Notes
Economic Perspectives
- Macro Economics: Study of the economy at a large-scale level, focusing on total output, price level, and aggregate measures of the economy.
Economic Concepts
- Factors of Production:Inputs used to produce a good or service, generating income.
- Opportunity Cost: Value of the opportunity given up when choosing one activity or opportunity over another, resulting from scarcity.
- Decision Making: Compare Marginal Benefit (MB) and Marginal Cost (MC) to make decisions: accept if MB ≥ MC, reject if MB < MC.
Test your knowledge on macro and microeconomics concepts. Learn about the differences between studying the economy at a large-scale level (macro) and a small-scale level (micro), as well as factors of production and opportunity cost.
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