Microeconomics Fundamentals Quiz

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What are the main focuses of economics?

The main focuses of economics are the production, distribution, and consumption of goods and services, as well as the behavior and interactions of economic agents.

What does microeconomics analyze?

Microeconomics analyzes individual agents and markets, their interactions, and the outcomes of interactions in the economy.

What are the broad distinctions within economics?

The broad distinctions within economics include those between positive economics (describing 'what is') and normative economics (advocating 'what ought to be'), between economic theory and applied economics, and between rational and behavioral economics.

What does macroeconomics analyze?

Macroeconomics analyzes the economy as a system, including the interactions of production, consumption, saving, and investment, as well as factors affecting it such as employment, inflation, economic growth, and public policies. Signup and view all the answers

What are some examples of individual agents in microeconomics?

Examples of individual agents in microeconomics include households, firms, buyers, and sellers. Signup and view all the answers

What is net income in business and accounting?

Net income is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period. Signup and view all the answers

How is net income computed?

Net income is computed as the residual of all revenues and gains less all expenses and losses for the period. Signup and view all the answers

How is net income different from gross income?

Net income deducts all expenses and losses from revenues and gains, while gross income only deducts the cost of goods sold from revenue. Signup and view all the answers

What does net income refer to for households and individuals?

For households and individuals, net income refers to the (gross) income minus taxes and other deductions (e.g. mandatory pension contributions). Signup and view all the answers

How can net income be distributed for a company?

Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings. Signup and view all the answers

What is revenue in accounting?

Revenue in accounting is the total amount of income generated by the sale of goods and services related to the primary operations of the business. Signup and view all the answers

What does the term 'revenue' may refer to?

The term 'revenue' may refer to income in general, or it may refer to the amount, in a monetary unit, earned during a period of time. Signup and view all the answers