10 Questions
Which concept from microeconomics is defined as the value of the next best alternative that must be forgone in order to pursue a certain action?
Opportunity Cost
What is the economic cost that involves an explicit monetary payment for an input called?
Explicit cost
What is the opportunity cost of inputs that are not subject to an explicit monetary payment called?
Implicit cost
Which concept from microeconomics refers to a situation in which no player can benefit by changing their strategy, assuming the strategies of others remain unchanged?
Nash Equilibrium
What is the concept from microeconomics that focuses on the efficient allocation of resources such that no one can be made better off without making someone else worse off?
Pareto Efficiency
What are the six key concepts from microeconomics that provide a foundation for urban economics?
- Opportunity Cost
- Marginal Principle
- Nash Equilibrium
- Comparative Statics
- Pareto Efficiency
- Self-Reinforcing Changes
Define opportunity cost in the context of urban economics.
Opportunity cost is the value of the next best alternative that must be forgone in order to pursue a certain action.
What are the two types of economic cost?
The two types of economic cost are explicit cost and implicit cost.
Differentiate between explicit cost and implicit cost.
Explicit cost involves an explicit monetary payment for an input, while implicit cost is the opportunity cost of inputs that are not subject to an explicit monetary payment.
What is the value of the next best alternative that must be forgone in order to pursue a certain action called?
The value of the next best alternative that must be forgone in order to pursue a certain action is the opportunity cost.
Test your knowledge of the key concepts in urban economics! This quiz covers six important concepts from microeconomics that form the basis of understanding urban economics, including opportunity cost and marginal productivity. Put your knowledge to the test and see how well you grasp these fundamental ideas.
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