10 Questions
Which branch of economics studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources?
Microeconomics
What is the primary focus of microeconomics?
Analyzing market mechanisms for establishing relative prices
In which branch of economics do we study the sum total of economic activity and national policies relating to growth, inflation, and unemployment?
Macroeconomics
What does microeconomics analyze when considering free markets?
Conditions under which free markets lead to desirable allocations
Which type of theories has much of modern macroeconomics been built upon?
Microfoundations based upon basic assumptions about micro-level behavior
According to microeconomic theory, what does rationality mean for an individual?
Having stable preferences that are complete and transitive
What technical assumption is needed to ensure the existence of a utility function in microeconomic theory?
Continuous preference relations
What guarantees the existence of a solution to the utility maximization problem according to economists?
Extreme value theorem
What is the heart of consumer theory in microeconomics?
Utility maximization problem
Which model of microeconomic theory takes consumer choice as the primitive?
Revealed preference theory
Test your knowledge of microeconomics with this quiz that covers the behavior of individuals and firms in decision-making, allocation of resources, market analysis, and more.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
