Economic Principles in Micro and Macro Decision-Making Quiz

Many buyers and sellers, no barriers to entry, homogeneous products, perfect information.

Total value of all goods and services produced within a country's borders in a specific period.

Value of the best alternative forgone in order to undertake a particular decision.

Land, labor, capital, entrepreneurship are the factors of production.

Total value of all goods and services produced within a country in a specific period.

Tax where the tax rate decreases as the taxable amount increases.

Total income from selling a given quantity of goods.

Statistical measure of the distribution of income in a population.

Single seller, unique product, high barriers to entry.

As you consume more of a good, the additional satisfaction (utility) decreases.

Measure of responsiveness of quantity demanded to a change in price.

Use of government spending and taxation to influence the economy.

Balance between supply and demand in the market.

Market dominated by a few large firms.

Assumption that the quantity and quality of resources are fixed.

Central bank responsible for monetary policy and regulating banks.

Economic situation with both high inflation and high unemployment.

Use of government spending and taxation to stabilize the economy.

Assumption that all other variables except the ones under consideration are held constant.

Inverse relationship between inflation and unemployment.

Measure of responsiveness of quantity demanded to a change in price.

Risk that individuals may alter their behavior when they are insured against the consequences of their actions.

Belief that markets tend towards equilibrium and full employment over time.