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