文档介绍：第1页 School of International Business Administration , ZISU Solutions toA ssignment A (Note: A ssignment A should be finished and handed inonMay2,2012) I. Interpret the following terms and concepts . (5x3 =15 points) conomics: E conomics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. quilibrium: T he condition that exists when quantity supplied and quantity demanded are equal. rice elasticity of demand: T he ratio of the percentage of change in quantity demanded to the percentage of change in price; measures the responsiveness of demand to changes in price. pportunity cost: The best alternative that we give up when we make a choice or decision. arginal benefit : The benefit ofa one-unit increase in an activity, or it is what you gain when you get one more unit of something. II. Answer the following questions briefly. (4x5 =20 points) hat are the three basic questions that microeconomics must answer? A nswer: what gets produced? H ow is it produced? W ho gets what is produced? hat are the five types of elasticity? A nswer: Perfectly inelastic, inelastic, unitarily elastic, elastic, perfectly elastic. ist several key factors that influence the quantity ofa product demanded bya single household. A nswer: The price of the product, the e available to the household, th