Unit 3

Question 1

a smartphone that is set to drop in price in three months

Answer 1

<–\

Question 2

The amount of a good or service that consumers are willing and able to purchase is _____.

Answer 2

demand

Question 3

The trend of utility to decrease as consumption increases is known as diminishing marginal utility.

Answer 3

true

Question 4

___ is measured by dividing the total products produced by the number of workers.

Answer 4

Productivity

Question 5

A price ______ typically creates a surplus of services and goods.

Answer 5

floor

Question 6

A(n) ______ results when supply exceeds demand in a market.

Answer 6

surplus

Question 7

Which of the following would be a short-term decision for a grocery store?

Answer 7

hiring a new director for quality control and the meat department

Question 8

______ cost measures the additional cost required to produce one more product.

Answer 8

Marginal

Question 9

The law of supply says that if the price of a good increases, so will the supply of the good.

Answer 9

true

Question 10

____ is the loss of capital due to wear and tear.

Answer 10

Depreciation

Question 11

What would happen to equilibrium price if demand increased?

Answer 11

The equilibrium price will increase and shift right.

Question 12

What would NOT be a part of the explicit costs of a company?

Answer 12

depreciation

Question 13

A(n) ______ is the result whenever demand exceeds supply.

Answer 13

shortage

Question 14

Market shortages are created when a government enforces a price _____.

Answer 14

ceiling

Question 15

A key component to using quantity demanded is the notion of ____.

Answer 15

income and willingness

Question 16

Demand for a(n) ___ good declines as income increases.

Answer 16

inferior

Question 17

The government passes a new tax on fast food that takes effect immediately.

Answer 17

/<–/

Question 18

The minimum profit matching what could be gained by doing something else is ___ profit.

Answer 18

normal

Question 19

the effect on the chicken liver market as demand increases for chicken legs

Answer 19

/–>/

Question 20

When a business decides on a course of action, ___ is/are what is given up.

Answer 20

opportunity cost

Question 21

A business owner orders supplies in February in the _____ that there will be demand for snow cones that summer.

Answer 21

expectation

Question 22

The point of balance between quantity demanded and quantity supplied is the ___ price.

Answer 22

equilibrium

Question 23

A good that can be used in place of another is a(n) ____ good.

Answer 23

substitute

Question 24

The direction of the demand curve is a visual representation of ___.

Answer 24

the law of demand

Question 25

Which answer is NOT part of the TRIBE acronym?

Answer 25

exports and imports

Question 26

The amount of a good or service that producers are willing and able to provide to consumers is ______.

Answer 26

supply

Question 27

______ is the extent to which consumers receive value or benefit from a purchase.

Answer 27

utility

Question 28

According to the law of demand, _______.

Answer 28

the demand for a product will increase when price decreases

Question 29

The cost required to produce one more product is called what?

Answer 29

Marginal Cost