Econ Quiz 3

Question 1

Resource Allocation

Answer 1

We have to distribute resources that are produced in a given economy

Question 2

Market Price System

Answer 2

A system in which resources are allocated via a market price

Question 3

Command System

Answer 3

A system in which resources are allocated by the government

Question 4

Market

Answer 4

Any arrangement that brings buyers and sellers together to facilitate a transaction

Question 5

Quantity Demanded

Answer 5

The amount one is willing and able to buy at a specific price

Question 6

Law of Demand

Answer 6

If the price increases, quantity demand decreases and vice versa

Question 7

Demand

Answer 7

The relationship between price and quantity demand

Question 8

Increase in Demand

Answer 8

Increased income, environmental factors

Question 9

Decrease in Demand

Answer 9

Competition arises

Question 10

Demand Shifter

Answer 10

A factor that changes one quantity demanded at all prices

Question 11

List of Demand Shifters

Answer 11

The price of related goods
Expected future price of a good
Income
Expected future income
Number of consumers
Preferences

Question 12

Substitutes

Answer 12

Goods bought in place with other goods

Question 13

Complements

Answer 13

Goods bought with other goods

Question 14

Normal good

Answer 14

A good for which demand increases when income increases

Question 15

Inferior good

Answer 15

A good for which demand increases when income decreases