Microeconomics

Question 1

Market with many buyers and sellers, so that no single
buyer or seller has a significant impact on price.

Answer 1

perfectly competitive market

Question 2

Collection of buyers and sellers
that, through their actual or potential
interactions, determine the price of a product
or set of products.

Answer 2

market

Question 4

also face limits in terms of the kinds of products that
they can produce, and the resources available to produce
them.

Answer 4

Firms

Question 5

The social science which deals with the
production, distribution, and consumption of
limited goods and services to satisfy unlimited
needs and wants.

Answer 5

Economics

Question 6

Qd = Qd(P)

Answer 6

Demand Curve

Question 7

limitations–limited goods or services,
limited time, or limited abilities to
achieve the desired ends.

Answer 7

Scarcity

Question 8

Percentage change in
quantity demanded of a good resulting from a 1-
percent increase in its price.

Answer 8

price elasticity of demand

Question 9

The study of how society manages its scarce
resources.

Answer 9

Economics

Question 10

Analysis examining questions of
what ought to be.

Answer 10

normative analysis

Question 11

Two goods for which an increase in
the price of one leads to a decrease in the quantity
demanded of the other.

Answer 11

Complements

Question 12

society has limited resources and
therefore cannot produce all the goods
and services people wish to have.

Answer 12

Scarcity

Question 13

Branch of economics that deals with
the behavior of individual economic units—consumers,
firms, workers, and investors—as well as the markets that
these units comprise.

Answer 13

Microeconomics

Question 14

Boundaries of a market, both
geographical and in terms of range of products
produced and sold within it.

Answer 14

extent of a market

Question 15

Branch of economics that deals with
aggregate economic variables, such as the level and
growth rate of national output, interest rates,
unemployment, and inflation.

Answer 15

Macroeconomics

Question 16

Percentage change in one variable
resulting from a 1-percent increase in another.

Answer 16

elasticity

Question 17

Tendency in a free market for price to
change until the market clears.

Answer 17

market mechanism

Question 18

Qs = Qs(P)

Answer 18

Supply Curve

Question 19

Demand curve that is a straight line.

Answer 19

Linear demand curve

Question 20

Relationship between the quantity of
a good that producers are willing to sell and the price
of the good.

Answer 20

Supply Curve

Question 21

Two goods for which an increase in the
price of one leads to an increase in the quantity
demanded of the other.

Answer 21

Substitutes

Question 22

the idea that resources (such as time, money,
land, labor, capital, entrepreneurship, and
natural resources) are only available in limited
quantities, whereas wants are unlimited.

Answer 22

Scarcity

Question 23

Determination of the
buyers, sellers, and range of products that
should be included in a particular market.

Answer 23

market definition

Question 24

Relationship between the
quantity of a good that consumers are willing to
buy and the price of the good

Answer 24

Demand Curve

Question 25

Situation in which the quantity demanded
exceeds the quantity supplied.

Answer 25

shortage

Question 26

Situation in which the quantity supplied exceeds
the quantity demanded.

Answer 26

surplus

Question 27

Price that equates the quantity supplied to the
quantity demanded.

Answer 27

equilibrium (or market clearing) price

Question 28

also face constraints and make trade-offs. First,
people must decide whether and when to enter the
workforce. Second, workers face trade-offs in their choice of
employment. Finally, workers must sometimes decide how
many hours per week they wish to work, thereby trading off
labor for leisure.

Answer 28

Workers

Question 29

Price prevailing in a competitive market.

Answer 29

market price

Question 30

have limited incomes, which can be spent on a
wide variety of goods and services, or saved for the future.

Answer 30

Consumers

Question 31

Practice of buying at a low price
at one location and selling at a higher price in
another.

Answer 31

arbitrage

Question 32

Analysis describing relationships of
cause and effect.

Answer 32

positive analysis