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Microeconomics Fundamentals Quiz
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Microeconomics Fundamentals Quiz

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@SweetInsight

Questions and Answers

What does macroeconomics analyze?

  • The behaviour and interactions of economic agents
  • The employment of resources of labour, capital, and land
  • The economy as a system where production, consumption, saving, and investment interact (correct)
  • The impact of currency inflation on economic growth

    • What does microeconomics analyze?

  • The economy as a system and its interactions with other global economies
  • Individual agents and markets, their interactions, and the outcomes of interactions (correct)
  • The overall impact of public policies on economic growth
  • The employment of resources of labour, capital, and land

    • What is the distinction between positive economics and normative economics?

  • Positive economics advocates 'what ought to be', while normative economics describes 'what is'
  • Positive economics describes 'what is', while normative economics advocates 'what ought to be' (correct)
  • Positive economics focuses on economic theory, while normative economics focuses on applied economics
  • Positive economics analyzes the behaviour and interactions of economic agents, while normative economics analyzes the outcomes of interactions

    • What are the individual agents analyzed in microeconomics?

    <p>Households, firms, buyers, and sellers</p> Signup and view all the answers

    What are the factors affecting the economy analyzed in macroeconomics?

    <p>Employment of the resources of labour, capital, and land, currency inflation, economic growth, and public policies</p> Signup and view all the answers

    What is the goal of the consumer according to economists?

    <p>To maximize his/her level of satisfaction</p> Signup and view all the answers

    How is utility measured by economists?

    <p>As a measure of satisfaction, joy, or happiness</p> Signup and view all the answers

    According to the utility maximizing rule, how is the marginal benefit of a product measured?

    <p>By finding the marginal utility per dollar spent on the product</p> Signup and view all the answers

    How is the marginal cost of a product measured according to the text?

    <p>By finding the marginal utility that you are not receiving from a dollar's worth of your next best alternative</p> Signup and view all the answers

    What does the text assume about the consumer's income?

    <p>It is constrained</p> Signup and view all the answers

    What does the utility maximizing rule suggest about the marginal benefit of a product?

    <p>It can be measured by finding the marginal utility per dollar spent on the product</p> Signup and view all the answers

    What does the equal-margin concept in utility maximization imply?

    <p>The ratios of marginal utilities to price are equal</p> Signup and view all the answers

    What do choices that follow the marginal decision rule generally produce?

    <p>Downward-sloping demand curves</p> Signup and view all the answers

    How is the marginal cost of a product measured according to the text?

    <p>By finding the marginal utility that you are not receiving from a dollar's worth of your next best alternative</p> Signup and view all the answers

    What is the focus of utility-maximizing choices in relation to the marginal utilities and price?

    <p>Equal ratios of marginal utilities to price</p> Signup and view all the answers

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