Practice Individual Decision-making (1.1) - Microeconomics - IB 10 Individuals & Societies - Economics

Practice: Individual Decision-Making

Lesson 1.1Microeconomics

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9 questions

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4 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
Define scarcity.
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Think about resources and wants.
Question 2.
What does opportunity cost mean?
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Consider what you forego in making a decision.
3Question 3.
What describes the law of demand?
- A) Price increases lead to increased demand
- B) Price decreases lead to decreased demand
- C) Price increases lead to decreased demand
- D) Price has no effect on demand
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Recall the inverse relationship.
4Question 4.
True or False: Opportunity cost always involves money.
- True
- False
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Consider examples beyond financial decisions.
Question 5.
Consider a scenario where a consumer must choose between two job offers. Offer A pays $60,000 with a 1-hour commute, while Offer B pays $50,000 with a 15-minute commute. Calculate the opportunity cost if the individual chooses Offer A, assuming they value their travel time at $20/hour.
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Consider the total time and monetary value related to your choice.
Question 6.
Analyze how a government subsidy for organic crops could impact the demand and supply of those products in the market. Explain the potential effects on equilibrium price and quantity.
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Think about how subsidies affect costs and thus production decisions.

5 more questions in this section. Enroll free to practise them all.