5 Questions
Which of the following is NOT a factor considered in microeconomics?
Maximum benefits
What is the concept explored in microeconomics that refers to the potential benefits missed out on when choosing one option over another?
Opportunity cost
What is the term used in microeconomics to describe the maximum amount a consumer is willing to pay for an additional good or service?
Marginal benefits
What is the term used in microeconomics to describe the change in production cost when manufacturing more than one unit?
Marginal costs
What do social implications of choice in microeconomics refer to?
The positive or negative effects on society
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.
Test your knowledge of economics and understand the central economic problem of scarcity. Learn about the choices involved in production and consumption and how it affects society.
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