Podcast
Questions and Answers
Which of the following is NOT a factor considered in microeconomics?
Which of the following is NOT a factor considered in microeconomics?
- Taxes
- Maximum benefits (correct)
- Opportunity cost
- Minimum wages
What is the concept explored in microeconomics that refers to the potential benefits missed out on when choosing one option over another?
What is the concept explored in microeconomics that refers to the potential benefits missed out on when choosing one option over another?
- Rational decision making
- Taxes
- Minimum wages
- Opportunity cost (correct)
What is the term used in microeconomics to describe the maximum amount a consumer is willing to pay for an additional good or service?
What is the term used in microeconomics to describe the maximum amount a consumer is willing to pay for an additional good or service?
- Minimum wages
- Opportunity cost
- Taxes
- Marginal benefits (correct)
What is the term used in microeconomics to describe the change in production cost when manufacturing more than one unit?
What is the term used in microeconomics to describe the change in production cost when manufacturing more than one unit?
What do social implications of choice in microeconomics refer to?
What do social implications of choice in microeconomics refer to?
Flashcards
Not a microeconomic factor?
Not a microeconomic factor?
Maximum benefits is generally a goal, not a direct factor considered in microeconomic analysis.
Opportunity cost
Opportunity cost
Opportunity cost represents the value of the next best alternative forgone when a choice is made.
Marginal benefits
Marginal benefits
Marginal benefits refer to the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service, reflected in their willingness to pay.
Marginal costs
Marginal costs
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Social implications of choice
Social implications of choice
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Study Notes
Microeconomics Factors
- Macro factors such as economy-wide phenomena, like inflation, unemployment, and economic growth, are NOT considered in microeconomics.
Opportunity Cost
- Opportunity cost refers to the potential benefits missed out on when choosing one option over another.
Consumer Willingness to Pay
- The maximum amount a consumer is willing to pay for an additional good or service is known as the willingness to pay.
Economies of Scale
- The change in production cost when manufacturing more than one unit is described as economies of scale.
Social Implications of Choice
- Social implications of choice in microeconomics refer to the consequences of individual and collective decisions on society as a whole.
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