UNIT TEST VERY IMPORTANT STUDY

Question 1

Define Demand.

Answer 1

the amount of goods and services a consumer is willing/able to purchase at various prices at different time periods of the market.

Question 2

Define Supply.

Answer 2

the amount of goods and services that sellers will be willing and able to offer at various prices at different time periods of the market.

Question 3

What is the difference between Macro and Micro economics?

Answer 3

Microeconomics is the study of economic behavior and how price of goods and services are determined, While Macroeconomics is the study of Economy as a whole and Economy-wide issues, such as unemployment and inflation. (microeconomics deals with smaller things than macroeconomics)

Question 4

Name the 4 Resources

Answer 4

-Land
-Labor
-Capital
-Technology

Question 5

What does the resource Land mean?

Answer 5

-raw materials
-urban sprawl
-population increasing, need more for housing.

Question 6

What does the resource Labor mean?

Answer 6

-applying the physical and mental talents of humans to production of goods and services.
-boomers will start retiring

Question 7

What does the resource Capital mean?

Answer 7

-Things that make the production and distribution of goods and services easier. (machinery, equipment, robotics)

Question 8

What does the resource Technology mean?

Answer 8

-Technology is allowing us to produce more with our limited resources.

Question 9

Name the 5 Non-Price Determinants

Answer 9

-Income
-Taste and Preferences
-Expectations (of future prices)
-Population/Demographics
-Prices of Related Goods