Microeconomics vs. Macroeconomics Quiz

<p>It will increase, leading to an extension of demand. (B)</p> Signup and view all the answers

<p>Cars and gasoline (C)</p> Signup and view all the answers

<p>Demand for the original good will decrease. (A)</p> Signup and view all the answers

<p>As price increases, supply increases. (B)</p> Signup and view all the answers

<p>The scarcity of resources relative to unlimited wants. (C)</p> Signup and view all the answers

<p>As price decreases, supply decreases. (A)</p> Signup and view all the answers

<p>It indicates an increase in supply due to factors other than price. (D)</p> Signup and view all the answers

<p>Increased production costs decrease supply. (C)</p> Signup and view all the answers

<p>The price where demand and supply curves intersect. (B)</p> Signup and view all the answers

<p>A small price change leads to a proportionally larger change in quantity demanded. (C)</p> Signup and view all the answers

<p>Short production times increase supply elasticity. (B)</p> Signup and view all the answers

<p>Focus on profitability may exclude low-income consumers. (A)</p> Signup and view all the answers

<p>Under-production of merit goods like education and health services. (D)</p> Signup and view all the answers

<p>A combination of public and private sector operations. (B)</p> Signup and view all the answers

<p>It results in market failure. (D)</p> Signup and view all the answers

<p>Producers strive to use resources effectively for profit maximization. (B)</p> Signup and view all the answers

<p>A significant price decrease leads to a minimal increase in demand. (C)</p> Signup and view all the answers

<p>New technologies usually increase the supply of a product. (B)</p> Signup and view all the answers

<p>Producers may ignore negative externalities, leading to societal issues. (D)</p> Signup and view all the answers

<p>To assist businesses, potentially resulting in lower consumer prices. (C)</p> Signup and view all the answers

<p>The price of the next best alternative forgone. (D)</p> Signup and view all the answers

<p>The market's inability to efficiently allocate resources and achieve social goals. (B)</p> Signup and view all the answers

<p>By increasing production costs for businesses. (B)</p> Signup and view all the answers

<p>Goods that are non-excludable and non-rivalrous. (C)</p> Signup and view all the answers

<p>To rectify market failures and promote social welfare. (B)</p> Signup and view all the answers

<p>The responsiveness of demand or supply to price changes. (B)</p> Signup and view all the answers

<p>They are considered harmful to society. (C)</p> Signup and view all the answers

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Resources are limited, requiring choices for allocation.

The best alternative forgone when making a choice.

The desire and ability of consumers to buy a good or service.

The willingness and ability of producers to sell a good or service.

The point where demand and supply balance, stabilizing market price.

Unintended consequences of actions affecting third parties.

Inability of the market to allocate resources efficiently.

Combines market economy elements with government intervention.

The study of individual markets focusing on producers and consumers' decisions.

The study of the entire economy as a whole, focusing on growth, employment, and GDP.

How economies decide what goods and services to provide and to whom.

How markets distribute resources through equilibrium prices based on supply and demand.

As price increases, demand decreases; as price decreases, demand increases.

Elements like consumer income, taxes, and trends that shift demand curves.

As price increases, supply increases; as price decreases, supply decreases.

An increase in supply due to a price increase.

A decrease in supply due to a price decrease.

A right shift shows an increase in supply due to factors other than price, while a left shift indicates a decrease.

Higher costs decrease supply; lower costs increase supply.

The price where demand and supply curves intersect, leading to no pressure for price change.

Measures how quantity demanded responds to price changes.

PED is greater than 1; a price change leads to a larger change in demand.

PED is less than 1; a price change leads to a smaller change in demand.

Measures how quantity supplied responds to price changes.

A combination of market and government intervention, integrating both public and private sectors.

Producers favor more profitable products, affecting supply.

Goods considered harmful, often overproduced due to profitability despite societal negative effects.

Goods that benefit everyone but are not produced because they are not profitable.