Final Exam: Ch 13

Question 1

the value missed out on when you choose between two or more options

Answer 1

opportunity costs

Question 2

the day to day drivers of what happens in the economy. individuals, families and companies

Answer 2

Microeconomics

Question 3

national level policies, economy-wide phenomena. Federal taxes, money spent on education

Answer 3

Macroeconomics

Question 4

having less than quantity demanded

Answer 4

scarcity

Question 5

the balancing of giving up one thing to get another

Answer 5

trade-off

Question 6

one of our most precious and scarce resources

Answer 6

time

Question 7

the price that supply is equal to demand

Answer 7

market clearing price

Question 8

more supply than demand

Answer 8

surplus

Question 9

more demand than supply

Answer 9

shortage

Question 10

when things are purchased together

Answer 10

complimentary goods

Question 11

goods and services that are purchased instead of each other

Answer 11

substitute goods

Question 12

that will be purchases regardless of income

Answer 12

necessity goods

Question 13

even with large change in prices, there will be little change in the quantity demanded

Answer 13

inelastic demand

Question 14

when a product either has good subsitutes or is not considered essential

Answer 14

luxury product

Question 15

as price increases, the quantity demanded can have large changes

Answer 15

elastic demand

Question 16

the ability to produce a good at a lower opportunity cost than someone else

Answer 16

comparative advantage

Question 17

persons productivity is greater for all tasks compared to someone else

Answer 17

absolute advantage

Question 18

the products that are made in other countries and sold domestically

Answer 18

imports

Question 19

the products that are produced domestically and sold in other countries

Answer 19

exports

Question 20

a tax on imports to make them more expensive and the domestic industry seem more competitive by comparison

Answer 20

tariffs

Question 21

limits the amount of a good that can be imported

Answer 21

quota

Question 22

provides financial support to make an export cheaper and better be able to compete with other countries

Answer 22

subsidy

Question 23

there are a larger number of buyers and sellers so that no one person or company can control supply or demand

Answer 23

pure competition

Question 24

a marketplace in which there are a few sellers and there are barriers to entry such as high start up costs

Answer 24

oligopoly

Question 25

when a single seller dominates the market and there are no good substitution for the product or service

Answer 25

monopoly

Question 26

created when local, state, or federal governments grant exclusive rights to a single company to provide a product or service.

Answer 26

regulated monopoly

Question 27

the economy is always going through periods of expansion and contraction

Answer 27

business cycle

Question 28

when the economy starts to contract

Answer 28

recession

Question 29

an overall measure of the output of a goods and services of the economy in a given period of time

Answer 29

gross domestic product (GDP)

Question 30

causes prices to increase

Answer 30

inflation

Question 31

affects the supply of money requirements in the banking system, and interest rates

Answer 31

monetary policy

Question 32

the government's influence on the economy through spending and taxation

Answer 32

fiscal policy

Question 33

____ studies how individuals, households, and companies make decisions and how they interact with markets.

Answer 33

microeconomics

Question 34

____ studies the economy-wide impact of phenomena

Answer 34

macroeconomics

Question 35

____ is having less of than the quantity demanded.

Answer 35

scarcity

Question 36

one of the most precious resources is ____

Answer 36

time

Question 37

If the supply of something increases, the price will ____.

Answer 37

decrease

Question 38

If the demand of something increases, the price will ____.

Answer 38

increase

Question 39

Minimum wages can cause a(n) ____.

Answer 39

surplus

Question 40

___ are purchased together

Answer 40

complementary goods

Question 41

the market clearing price will not change unless something happens to the market

Answer 41

equillibrium