Basic Economic Concepts
Which of the following best describes the fundamental problem of economics?
What does opportunity cost represent?
Suppose you have $20. You can either buy a book or a video game. If you buy the book, what is the opportunity cost?
What does the Production Possibilities Curve (PPC) primarily illustrate?
How would the Production Possibilities Curve (PPC) likely shift if there's a significant technological improvement in the production of all goods?
Country A can produce either 100 cars or 150 bushels of wheat with its resources. Country B can produce either 75 cars or 50 bushels of wheat. If both countries are producing at full potential, which country has a comparative advantage in producing cars?
Country X can produce 20 units of steel or 30 units of textiles. Country Y can produce 10 units of steel or 20 units of textiles. What are the potential gains from trade if each country specializes in the product where they have a comparative advantage?
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According to the law of demand, what happens to the quantity demanded of a good when its price increases?
According to the law of supply, what happens to the quantity supplied of a good when its price increases?
If there is an increase in both the supply and demand for a product, what will happen to the equilibrium quantity?