Quiz #11 Vocab

Question 0

Costs that change with levels of production

Ex: wages

Answer 0

Variable cost

Question 1

Costs that do not change with levels of production

Ex: rent or lease payments

Answer 1

Fixed costs

Question 2

A drop in business activity or fall in aggregate demand

GDP shrinks

Answer 2

Recession

Question 3

The pay off an entrepreneur seeks when she/he goes into business

Answer 3

Profit

Question 4

Price at which quantity supplied equals quantity demanded

Answer 4

Equilibrium

Question 5

Something that motivates a certain behavior

Answer 5

Incentive

Question 6

Something that motivates you not to do something

Answer 6

Disincentive

Question 7

Dislike of or desire to avoid

Answer 7

Averse

Question 8

To discourage

Answer 8

Deter

Question 9

Goods used to produce other goods

Answer 9

Capital goods

Question 10

Getting the most production/benefit for the lowest cost

Answer 10

Efficiency

Question 11

Goods that are nonexcludable and non-divisible; cannot be efficiently produced by the private market and are provided by the government
Ex: roads, streetlights

Answer 11

Public goods

Question 12

Economics that involves value judgments; inserting personal values into Data

Answer 12

Normative economics

Question 13

Sudden restrictions in supplying that cause high prices and shortages

Answer 13

Supply shocks

Question 14

Statement of international flows of money

Answer 14

Balance of payments

Question 15

Fall in value of an asset or currency

Answer 15

Depreciation

Question 16

Rise in value of an asset or currency

Answer 16

Appreciation

Question 17

Economics that confines itself to data analysis and avoids value judgments

Answer 17

Positive economics