Micro Economics

1. In economics, choices are necessary because of the presence of:

2. Economics is the study of:

3. Because of scarcity:

4. Microeconomics is the study of:

5. Which of the following is not a type of incentive?

6. If the government wanted to give people a negative direct incentive not to save money, what would be the appropriate policy?

7. An example of a direct positive incentive is:

8. Actions and activities are encouraged with which type of incentive?

9. Indirect incentives create:

10. Rational decision-making under conditions of scarcity requires individuals to:

11. Economics is concerned with the trade-offs that emerge because of scarcity. The term "trade-offs" refers to:

12. The cost of a trade-off is known as the ________ of that decision.

13. Opportunity cost is the ________ alternative forfeited when a choice is made.

14. An opportunity cost is the:

15. The trade-offs that are made because of scarcity:

16. The term ________ means "additional."

17. Economists believe that optimal decisions are made up to the point where:

18. An activity's marginal benefit is ________ at the optimal quantity.

19. Who benefits from voluntary trade?

20. What creates comparative advantage?

21. Comparative advantage emerges because of the presence of:

22. A person has a comparative advantage in the production of a good when she or he can produce the product at a(n) ________ opportunity cost compared to another person.

23. The Five Foundations of Economics are:

24. The production possibilities frontier (PPF) shows:

25. At full employment, a society produces:

26. The area inside (within) the production possibilities frontier (PPF) contains:

27. If a society is producing at a point on the production possibilities frontier (PPF), it can only increase the production of one good by:

28. A society that is producing its maximum combination of goods and using all available resources for production:

29. On a production possibilities frontier (PPF) that shows the trade-off between consumer goods and capital goods given a fixed amount of labor, unemployment is illustrated by:

43. You can see that the opportunity cost of moving from point B to point D is different from the opportunity cost of moving from point D to point C because:

44. The _________ states that the opportunity cost of producing a good always rises as you produce more of it.

45. When the opportunity cost of producing a good rises as you produce more of it, you experience:

46. As you move from one efficient point on the production possibilities frontier (PPF) to another efficient point on the PPF, you experience:

47. Suppose you are studying a production possibilities frontier (PPF) that has a bowed-out shape relative to the origin. What causes this shape?

48. Opportunity cost is evident on the production possibilities frontier (PPF) graph:

49. Suppose you find a production possibilities frontier (PPF) that is shaped like a straight line. What can you determine about the production of the two goods?

60. An increase in general resources that affects the production of both goods on a production possibilities frontier (PPF) would cause an:

61. Economic growth is represented on a production possibilities frontier (PPF) by the PPF: