econ chapter 4, 5, 6

Question 1

any place where people come together to buy and sell goods or services

Answer 1

market

Question 2

the willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period

Answer 2

demand

Question 3

a law stating that as the price of a good increases, the quantity demanded of the good decreases, and that as the price of a good decreases, the quantity demanded of the good increases

Answer 3

law of demand

Question 4

the number of units of a good purchased at a specific price

Answer 4

quantity demanded

Question 5

a law stating that as a person consumes additional units of a good, eventually the utility gained from each additional unit of the good decreases

Answer 5

law of diminishing marginal utility

Question 6

the numerical representation of the law of demand

Answer 6

demand schedule

Question 7

the graphical representation of the law of demand

Answer 7

demand curve

Question 8

a good for which the demand rises as income rises and falls as income falls

Answer 8

normal good

Question 9

a good for which the demand falls as income rises and rises as income falls

Answer 9

inferior good

Question 10

a good for which the demand remains unchanged as income rises or falls

Answer 10

neutral good

Question 11

a similar good. The price of one and the demand for the other move in the same direction

Answer 11

substitute

Question 12

a good that is consumed jointly with another good. the price of one and the demand for the other move in opposite directions

Answer 12

complement

Question 13

the willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices during a specific time period

Answer 13

supply

Question 14

a law stating that as the price of a good increases, the quantity supplied of the good increases, and as the price of a good decreases, the quantity supplied of the good decreases

Answer 14

law of supply

Question 15

a relationship between two factors in which the factors move in the same direction. For example, as one factor rises, the other rises, too

Answer 15

direct relationship

Question 16

the number of units of a good produced and offered for sale at a specific price

Answer 16

quantity supplied

Question 17

a numerical chart illustrating the law of supply

Answer 17

supply schedule

Question 18

a graph that shows the amount of a good sellers are willing and bale to sell at various prices

Answer 18

supply curve

Question 19

the body of skills and knowledge concerning the use of resources in production

Answer 19

technology

Question 20

the ability to produce more output with a fixed amount of resources

Answer 20

advancement in technology

Question 21

the average cost of a good. If 400,000 is spent to produce 100 cars, the average is 4,000

Answer 21

per-unit cost

Question 22

a financial payment made by government for certain action

Answer 22

subsidy

Question 23

a legal limit of the number of units a foreign produced good that can enter a country

Answer 23

quota