Economics

Question 1

amount of a good or service that consumers are able and willing to buy at & various possible prices during a specified time period.

Answer 1

Demand

Question 2

amount of a good or service that producers are able and willing to sell at various prices during a specified time period

Answer 2

Supply

Question 3

process of freely exchanging goods and services between buyers and sellers

Answer 3

Market

Question 4

transaction in which a buyer and a seller exercise their economic freedom by working out their own terms of exchange.

Answer 4

Voluntary exchange

Question 5

As price goes up demand goes down

Answer 5

Law of demand

Question 6

amount of a good or service that a consumer is willing and able to purchase at a specific price.

Answer 6

Quantity demand

Question 7

economic rule stating that individuals cannot keep buying the same quantity of a product if its price rises while their income stays the same.

Answer 7

Real income effect

Question 8

economic rule stating that if two items satisfy the same need and the price of one rises, people will buy the other.

Answer 8

Substitution effect

Question 9

the ability of any good or service to satisfy consumer wants.

Answer 9

Utility

Question 10

an additional amount of satisfaction.

Answer 10

Marginal utility

Question 11

economic rule stating that the additional satisfaction a consumer gets from * purchasing one more unit of a product will lessen with each additional unit purchased.

Answer 11

law of diminishing marginal utility

Question 12

table showing quantities that would be demanded at various prices

Answer 12

P Demand schedule

Question 13

downward-sloping line that graphs the quantities demanded at each possible price.

Answer 13

Demand curve

Question 14

for a product often used with another product; as the price of one product) i decreases, the demand for the other increases.

Answer 14

Complementary good

Question 15

measures consumers’ responsiveness to an increase or decrease in price.

Answer 15

Elasticity

Question 16

measures the amount that demand varies according to changes in price.

Answer 16

price elasticity of demand

Question 17

the rise or fall in a product’s price greatly affects the amount that people are willing to buy

Answer 17

elastic demand

Question 18

A product’s price change has little impact on the quantity demanded by consumers.

Answer 18

inelastic demand

Question 19

economic rule that price and quantity supplied move in the same direction.

Answer 19

law of supply

Question 20

the amount of a good or service that a producer will supply at a specific price.

Answer 20

quantity supplied

Question 21

table showing quantities supplied at different possible prices.

Answer 21

supply schedule

Question 22

any use of land, labor or capital that produces goods and services more efficiently.

Answer 22

Technology

Question 23

economic rule that says as more units of production are added, total output increases at a diminishing rate.

Answer 23

law of diminishing returns

Question 24

the price at which quantity demanded and quantity supplied Meet

Answer 24

equilibrium price

Question 25

condition that occurs when quantity demanded is greater than quantity supplied.

Answer 25

Shortage

Question 26

condition that occurs when quantity demanded is less than quantity supplied.

Answer 26

Surplus

Question 27

A government set maximum price

Answer 27

Price ceiling

Question 28

limiting distribution of items that are in short supply.

Answer 28

Rationing

Question 29

an illegal market in which high prices are charged for items in short supply.”

Answer 29

Black market

Question 30

government-set minimum price.

Answer 30

Price floor