Micro Economics
Micro Economics
Micro Economics
100
This model represents
What is a Circular Flow model?
100
The value of the next best alternative foregone when making a decision.
What is opportunity cost?
100
A government-imposed maximum price that is set below the equilibrium price, leading to shortages.
What is a binding price ceiling?
200
If consumer preferences shift toward healthier foods, what happens to the demand for fast food?
Decreases
200
Quantity supplied exceeds quantity demanded, causing downward pressure on price.
What is surplus?
200
Prices adjust in a market to bring supply and demand into balance.
What is the law of supply and demand?
300
A rise in consumer income typically does what to demand?
Increases
300
A market structure dominated by a few large firms, where each firm’s decisions affect the others.
What is an oligopoly?
300
A market structure where many firms sell identical products, and no single firm can influence the market price.
What is perfect competition?
400
Changes in production costs, technology, taxes, and the number of suppliers.
Factors that can shift the supply curve?
400
A market structure where one firm controls the entire market for a good or service.
What is a monopoly?
400
The limit on the consumption choices a consumer can make, given their income and the prices of goods.
What is a price floor?
500
when the quantity supplied equals the quantity demanded at a certain price.
What is market equilibrium?
500
As the price of a good increases, the quantity supplied increases, and vice versa.
What is the law of supply?
500
A curve showing the maximum possible output combinations of two goods given available resources and technology.
What is a production possibility frontier (PPF)?