Micro vs. Macro Showdown
This field of economics studies the behavior of individual consumers, households, and firms.
What is microeconomics?
What are the three main resource allocation questions?
What to produce, how to produce, and for whom to produce?
This is the term for the quantity of a good or service that consumers are willing and able to buy at various prices.
What is demand?
This curve shows the relationship between the price of a good and the quantity demanded.
What is the demand curve?
The study of national unemployment rates, and inflation, falls under this branch of economics.
What is macroeconomics?
A market economy uses this mechanism to allocate resources.
What is the price system?
The term for the quantity of a good or service that producers are willing and able to sell at various prices.
What is supply?
This term describes the sum of all individual demand curves for a good or service.
What is the market demand curve?
If you’re analyzing how a single business sets its prices, you’re working in this area of economics.
What is microeconomics?
When you have to choose between buying a burger or a pizza, you are dealing with this type of economic problem.
What is scarcity?
A movement along the demand curve is caused by a change in this.
What is the price of the good?
An increase in the price of a good will cause this kind of movement along the supply curve.
What is a movement upward or to the right?
This type of economist would address the question, "What policies can reduce inflation?"
What is a macroeconomist?
This question asks "Who gets the goods and services that are produced?"
What is "For whom to produce?"
When a non-price factor, such as consumer preferences, increases demand, the demand curve does this.
What is shift to the right?
A new technology that improves efficiency will cause this to happen to the supply curve.
What is a rightward shift?
The big question, "Should a country focus on consumer goods or capital goods?" belongs to this economic branch.
What is macroeconomics?
This economic system relies on both market mechanisms and government intervention to allocate resources.
What is a mixed economy?
This happens to the supply curve when production costs decrease.
What is shift to the right?
When the government introduces a subsidy for producers, this happens to the supply curve.
What is a rightward shift?