INTRODUCTION TO MICROECONOMICS

QUIZ 1: CHAPTERS 1 TO 4

1. SCARCITY - PROBLEM BEING SOLVED BY ECONOMICS

2. ALLOCATION - DISTRIBUTION WITH VALUE
3. CETERIS PARIBUS - ECONOMIC ASSUMPTION THAT SIMPLIFIES COMPLEX SITUATIONS
4. CETERIS PARIBUS - ALLOWS THE COMPARISON OF TWO VARIABLES IN A GIVEN SCENARIO
5. KARL MARX - GERMAN ECONOMIST WHO DESCRIBED CAPITALISM AS EVIL IN THE SOCIETY
6. WEALTH OF THE NATIONS - BOOK WRITTEN BY ADAM SMITH
7. JOHN HICKS - PROPOSED THE WELFARE THEORY
8. NORMATIVE STATEMENTS - ECONOMIC STATEMENTS THAT PROVIDE POLICY ADVICES AND SOLUTIONS
9. POSITIVE STATEMENTS - DESCRIPTIVE STATEMENTS IN ECONOMICS
10. POSITIVE STATEMENTS - OBJECTIVE STATEMENTS THAT PROVIDE REALITY

QUIZ 2: CHAPTERS 5 TO 8

1. UNDERPRODUCTION - FAILURE TO MEET DEMAND

2. SAVE - PURPOSE OF THE 4 BASIC ECONOMIC QUESTIONS IN RELATION TO SCARCE RESOURCES:
3. PRESERVE
4. CONSERVE
5. HOW MUCH TO PRODUCE? - ESTIMATING OPTIMUM AMOUNT FOR PRODUCTION
6. WEALTH - ANYTHING WITH FUNCTIONAL VALUE
7. EXCHANGE - TRADING GOODS FOR MONEY OR OTHER GOODS OF THE SAME VALUE
8. OPPORTUNITY COST -MEASURE OF THE VALUE OF THE ALTERNATIVE NOT CHOSEN
9. SALARY - FIXED PAYMENT FOR HUMAN EFFORT IN PRODUCTION
10. LOSS - DEFICIT PAYMENT FOR ENTREPRENEURSHIP

QUIZ 3: CHAPTERS 9 TO 11

1. GROWTH OVER TIME - ECONOMIC DECISION OF WEIGHING AND DIVIDING NEEDS OVER WANTS
AND DIVIDING RESOURCES ACCORDINGLY.
2. TRADITIONAL ECONOMY - ECONOMIC SYSTEM LEAD BY THE HEAD/ LEADER/ OLDEST/ STRONGEST
MEMBER OF THE GROUP/ FAMILY.
3. COMMAND ECONOMY - ECONOMIC SYSTEM WITH COMMUNAL CONSUMPTION.
4. GOVERNMENT/ CENTRAL STATE - DECISION MAKER IN THE ECONOMIC SYSTEM THAT DOES NOT ALLOW
ACCUMULATION OF PERSONAL WEALTH.
5. FREE MARKET ECONOMY - ECONOMIC SYSTEM MOVED SOLELY BY DEMAND AND SUPPLY WITH NO
GOVERNMENT INTERVENTION.
6. MARKET - CENTRAL CONCEPTS IN MICROECONOMICS:
7. BUYER
8. SELLER
9. UNDERSTAND ECONOMY AS A WHOLE - MAIN GOAL OF MACROECONOMICS
10. MICROECONOMICS - STUDY OF ECONOMICS BASED ON INDIVIDUAL DECISION CHOICES.
 QUIZ 4: MARKET

1. PURE/ PERFECT COMPETITION/PER.COM.MAR. - MARKET WITH MANY BUYERS AND SELLERS OF SAME
PRODUCTS AND EASY ENTRY IN THE MARKET.
2. OLIGOPOLY - FEW SELLERS WITH ALMOST THE SAME PRODUCTS AND DIFFICULT MARKET ENTRY.
3. MONOPOLY - SINGLE SELLER WITH MANY BUYERS OF UNIQUE PRODUCT AND IMPOSSIBLE MARKET ENTRY.
4. DUOPOLY - TWO SELLERS MANY BUYERS OF SLIGHTLY DIFFERENTIATED PRODUCTS AND DIFFICULT ENTRY
IN THE MARKET.
5. MONOPOLISTIC COMPETITION - COMBINATION OF CHARACTERISTICS OF PERFECT COMPETITION AND
OLIGOPOLY.
6. MONOPSONY – SINGLE BUYER WITH MANY SELLERS OF SLIGHTLY DIFFERENTIATED PRODUCTS.
7. DUOPSONY – TWO BUYERS MANY SELLERS OF SLIGHTLY DIFFERENTIATED PRODUCTS.
8. BILATERAL MONOPOLY - SINGLE SELLER AND SINGLE BUYER OF A UNIQUE PRODUCT.
9. OLOGOPSONY – FEW BUYERS AFFECTING THE PRICE FOR THE MANY SELLERS OF SLIGHTLY DIFFERENTIATED
GOODS.
10. BILATERAL OLIGOPOLY – FEW SELLERS WITH ALMOST THE SAME PRODUCTS ENTERTAINING FEW BUYERS.

QUIZ 5: DEMAND

1. CP, INCREASE IN P, DECREASE IN QD – LAW OF DEMAND

2. INVERSE/OPPOSITE/NEGATIVE - RELATIONSHIP OF PRICE AND QUANTITY DEMANDED
3. DOWNWARD - SLOPE OF THE DEMAND CURVE
4. NORMAL GOOD - GOOD BOUGHT MORE WHEN THERE IS INCREASE IN INCOME
5. INFERIOR GOOD - GOOD BOUGHT MORE WHEN THERE IS DECREASE IN INCOME
6. DEMAND SCHEDULE - TABULAR REPRESENTATION OF PRICE AND QUANTITY DEMANDED
7. DEMAND CURVE - GRAPHICAL REPRESENTATION OF PRICE AND QUAANTITY DEMANDED
8. COMPLEMENT GOOD - GOODS BOUGHT TOGETHER THAT AFFECT QUANTITY DEMANDED
9. IN- SEASON GOODS - GOODS WITH HIGHER QUANTITY DEMANDED DURING THE GIVEN SEASON
10. CHANGE IN QD - CHANGE THAT SHOWS MOVEMENT WITHIN THE SAME DEMAND CURVE

QUIZ 6: SUPPLY

1. CP, INCREASE IN P, INCREASE IN QS - LAW OF SUPPLY

2. UPWARD - SLOPE OF SUPPLY CURVE
3. DIRECT/ POSITIVE - RELATIONSHIP OF PRICE AND QUANTITY SUPPLIED
4. INPUT PRICES - OTHER FACTORS THAT AFFECT SUPPLY ASIDE FROM PRICE
5. TECHNOLOGY
6. GOVERNMENT POLICIES
7. NUMBER OF SELLERS
8. EXPECTATIONS
9. CHANGE IN QS - MOVEMENT OF QUANTITY SUPPLIED WITHIN THE SAME SUPPLY CURVE
10. MAXIMUM PROFIT - ULTIMATE GOAL OF THE SELLER
 QUIZ 7: ELASTICITY

1. UNIT/UNITARY ELASTIC - ABSOLUTE COMPUTED VALUE OF ELASTICITY EQUAL TO ONE

2. INELASTIC - ABSOLUTE COMPUTED VALUE OF ELASTICITY LESS THAN ONE
3. ELASTIC - ABSOLUTE COMPUTED VALUE OF ELASTICITY GREATER THAN ONE
4. PRICE ELASTICITY OF DEMAND - PERCENTAGE CHANGE IN PRICE IN RELATION TO PERCENTAGE CHANGE IN
QUANTITY DEMANDED
5. PRICE ELASTICITY OF SUPPLY - PERCENTAGE CHANGE IN PRICE IN RELATION TO PERCENTAGE CHANGE IN
QUANTITY SUPPLIED
6. INCOME ELASTICITY OF DEMAND - PERCENTAGE CHANGE IN INCOME IN RELATION TO PERCENTAGE
CHANGE IN QUANTITY DEMANDED
7. CROSS PRICE ELASTICITY OF DEMAND - PERCENTAGE CHANGE IN PRICE OF A GOOD IN RELATION TO
PERCENTAGE CHANGE IN QUANTITY DEMANDED OF ANOTHER
8. INELASTIC - RELATIVE ELASTICITY OF NECESSITY GOODS
9. ELASTIC - RELATIVE ELASTICITY OF GOODS WITH CLOSE SUBSTITUTES
10. ELASTIC - RELATIVE ELASTICITY OF GOODS CONSUMED IN THE LONG RUN