Microeconomics and Economic Concepts
6 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary focus of microeconomics?

  • The study of individual consumer behavior and market dynamics (correct)
  • The examination of government budgeting and fiscal policy
  • The analysis of national income and employment trends
  • The investigation of international trade and exchange rates

    • Which economic concept is represented by the equation: Y = C + I + G + (X - M)?

  • Aggregate Demand
  • Quantity Theory of Money
  • Phillips Curve
  • Gross Domestic Product (GDP) (correct)

    • Which scenario best exemplifies the concept of 'opportunity cost'?

  • A government decreases taxes to stimulate consumer spending, resulting in a budget deficit.
  • A student chooses to study for an exam instead of going to a movie, giving up the enjoyment of the movie for potentially better grades. (correct)
  • A country experiences inflation due to excessive money supply, causing a decrease in purchasing power.
  • A company invests in new machinery, leading to increased production but also higher maintenance costs.

    • Which of the following is a characteristic of a perfectly competitive market?

    <p>Homogeneous products</p> Signup and view all the answers

    What is the impact of an increase in interest rates on the money supply?

    <p>Decrease in money supply due to reduced borrowing</p> Signup and view all the answers

    Which of the following is a fiscal policy tool used to combat inflation?

    <p>Decreasing government spending</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser