31 Questions
What is the formula for calculating profit?
P = TR - TC
What does the percentage change formula measure?
Change in amount as a percentage of the original amount
How is total revenue calculated?
TR = P * Q
What are wants in economics?
Human desires that are unlimited or infinite
What does microeconomics focus on?
Individual agents within the economy
What is the formula for price elasticity of demand (PED)?
PED = PercentΔInQTY Demanded / PercentΔInPrice
What is the basic economic problem?
The unlimited wants and limited resources
Which of the following is considered a need?
Food
What are the four primary factors of production?
Land, labor, capital, enterprise
What is financial capital in the context of production?
The money invested into the business to produce physical capital
Why do businesses/individuals/governments have to make decisions on how to allocate resources?
Due to scarcity of resources and unlimited wants
What is human capital in the production process?
The human input into the production process (e.g., workers, managers)
What are some examples of natural resources included in the factor of land?
Water, air, minerals, soil
What does scarcity refer to in economics?
The limited availability of resources relative to unlimited wants
What does investment refer to in the context of production?
Increases in the level of capital
Why do countries have to decide on 'What to Produce'?
It is impossible to produce all the goods that people want
What is the formula for calculating profit?
P = TR - TC
What does the term 'scarcity' refer to in economics?
The limited nature of society's resources
What does the formula for percentage change measure?
Change in price
What is the formula for price elasticity of demand (PED)?
PED = P ercent Δ In QT Y Demanded/P ercent Δ In P rice
What does microeconomics focus on?
Individual agents within the economy
What are wants in economics?
Human desires that are unlimited or infinite
What is the basic economic problem?
Limited resources and unlimited wants
What are the primary factors of production?
Land, labor, capital, enterprise
What does investment refer to in the context of production?
Money invested into the business to produce physical capital
What is the role of enterprise in the production process?
Control and combine the other primary factors of production
Why do countries have to make decisions on 'What to Produce'?
To address the basic economic problem of scarcity
What does scarcity refer to in economics?
The gap between limited resources and unlimited wants
What are considered as needs in economics?
Food, shelter, water
'For Whom to Produce' in economics refers to:
Method of distribution among members of the population.
What comprises financial capital?
The money invested into the business.
This quiz covers the key concepts of the market system in microeconomics, including formulas related to profit, total revenue, total cost, percentage change, and price elasticity of demand (PED). Test your understanding of these fundamental microeconomic principles through this quiz.
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