Economics Chapter 7

Question 0

Situation in which the quantity demanded is greater than the quantity supplied at the current price

Answer 0

Shortage

Question 1

Economic rule stating that price and quantity supplied move in the same direction

Answer 1

Law of supply

Question 2

Ability of any good or service to satisfy consumer wants

Answer 2

Utility

Question 3

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

Answer 3

Technology

Question 4

Economic law stating that as the price of a good rises the quantity demanded falls

Answer 4

Law of demand

Question 5

Economic law stating that the satisfaction that a consumer gets one more unit of a product will decrease with each additional unit bought

Answer 5

Law of diminishing marginal utility

Question 6

Economic rule not keep buying the same amount of a good or survive its price rises while their income stays the same

Answer 6

Real income effect

Question 7

Economic rule stating that, after some point, adding units of production increase output less then the previous input

Answer 7

Law of diminishing returns

Question 8

One product often used with another product

Answer 8

Complementary goods

Question 9

Line plotted on a graph that shows the quantities supplied of a good or service at each possible price

Answer 9

Supply curve