AP Microeconomics : Scarcity, Choice, Opportunity Cost, and Basic Definitions Quiz

Quiz
*Theme/Title: Scarcity, Choice, Opportunity Cost, and Basic Definitions
* Description/Instructions
Scarcity is the assumption that individuals have unlimited wanted but limited resources to satisfy those wants. Because wants are greater than the resources, individuals must make a choice. When making a choice, individuals must give up alternatives. The value of the next best alternative is referred to as opportunity cost. Microeconomics looks at how individuals make choices such as how to maximize utility and Macroeconomics looks at how the world makes choices under conditions of scarcity. When individuals think in terms of what should be, they are using normative thinking. When individuals think in terms of what is, individuals are using positive economic thinking. Favorite macroeconomic concepts on the AP are employment, inflation, and economic growth. Economists use marginal analysis to consider the costs and benefits of consuming the next unit in making rational decisions.

Group: AP Microeconomics AP Microeconomics Quizzes
Topic: AP Microeconomics



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