Econ Final Review chap 4-6

Question 1

Externality

Answer 1

A side effect or consequence of an industrial or commercial activity that affects other parties

Question 2

Law of supply

Answer 2

A direct relationship between price and quantity

Question 3

Demand determinants

Answer 3

When factors other than price change, demand curve will shift

Question 4

Utility

Answer 4

The state of being useful or beneficial

Question 5

Supply curve

Answer 5

Relationship between product price and quantity that the seller is willing to supply

Question 6

Total revenue test

Answer 6

A means for determining whether demand is elastic or Inelastic

Question 7

Supply determinants

Answer 7

When factors other than prices change, the supply curve will shift

Question 8

Complementary good

Answer 8

A good with negative cross elasticity of demand

Question 9

Adam smith

Answer 9

Father of economics

Question 10

Private good

Answer 10

A product that must be purchased in order to be consumed

Question 11

Law of demand

Answer 11

All other factors being equal , as the price of a good or service increases or decreases