IB Economics Microeconomics Midterm Exam Questions With Correct Answers 2024.

Scarcity - Answer the condition that results from limited resources combined with unlimited wants Opportunity Cost - Answer Cost of the next best alternative use of money, time, or resources when one choice is made rather than another Factors of Production - Answer resources of land, labor, capital, and entrepreneurship used to produce goods and services Land - Answer the physical location where production occurs. Includes bodies of water as well as resources extracted from the earth. Labor - Answer the work done by humans that is used in the production of goods and services. Capital - Answer previously manufactured goods used to make other goods and services Entrepreneurship - Answer the process of starting, organizing, managing, and assuming the responsibility for a business Market - Answer a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade Demand - Answer The quantity of a good or service that consumers are willing and able to purchase at a given price in a given period of time. Consumer Demand - Answer The amount of a good or service a consumer is willing and able to purchase at a range of prices.