Micro-Economics Exam Questions And Answers Verified 100% Correct

Micro-Economics Exam Questions And Answers Verified 100% Correct tastes and preferences - ANSWER -can be influenced by marketing or personal traits/habits etc. price - ANSWER -the higher the price per product the fewer units consumers will purchase. Normal goods - ANSWER -consumers' income goes up and they buy more. Inferior goods - ANSWER - Price of Related Goods - ANSWER -price of one good goes up, a related product's demand goes up. Network Effect - ANSWER -demand for a product determined by if other people are buying. ex. - peer pressure. Supply curve shows: - ANSWER -the relationship between the price and the quantity supply. Equilibrium price and equilibrium quantity are being determined by: - ANSWER -supply and demand Economics: - ANSWER -study of how society allocates scarce resources. Scarcity - ANSWER -limited resources. opportunity cost - ANSWER -value of next best alternative; what you give up. is the decision worth the resources used for its purpose and value? Specialization - ANSWER -can allow us to get more out of the resources we have. made possible by trade. Technology - ANSWER -how was the potential market expanded? comparative advantage - ANSWER -the ability to produce a good at a lower opportunity cost than another producer. absolute advantage - ANSWER -the ability to produce more of a given product using a given number of resources or at a faster rate. Sandy makes 12 pizzas and 15 pastas an hour. Emily makes 24 pizzas and 10 pastas an hour. Who has the comparative advantage at making pizzas? - ANSWER -Sandy. supply - ANSWER -factors that affect how much of a product that sellers want to sell. demand - ANSWER -factors that affect how much of a product that buyers are willing to buy. non-price factors - ANSWER -will shift the demand curve.