Microeconomics

Question 1

Price goes down, quantity goes up

Answer 1

Law of demand

Question 2

Price goes up, supply goes up AEHC (v.v)

Answer 2

Law of supply

Question 3

Anyplace where, or mechanism by which, buyers and sellers interact to trade g,s,r

Answer 3

Market

Question 4

A tangible product customers wish to buy

Answer 4

Good

Question 5

An often intangible product or action consumers wish to purchase

Answer 5

Service

Question 6

The quantity of a g,s,r that consumers are willing and able to pay at a given price.

Answer 6

Quantity demanded

Question 7

Price goes up and purchasing power goes down (v.v)

Answer 7

The income effect

Question 8

An increase in the price of one good will increase the demand for its substitutes (v.v)

Answer 8

The substitution effect

Question 9

Describes how the benefit of consuming more of a good falls with each additional unit

Answer 9

Diminishing marginal utility

Question 10

The overall, or total demand for a g,s,r.

Answer 10

Market demand

Question 11

A good for which there is a direct relationship between the demand for the good and income. Income increases, demand increases (v.v)

Answer 11

Normal good

Question 12

A good for which there is an inverse relationship between the demand for the good and income. Income increases, demand decreases (v.v).

Answer 12

Inferior good

Question 13

In the determinants of income — what causes a movement along the demand curve ?

Answer 13

Income effect

Question 14

In the determinants of income — what causes a shift in the demand curve ?

Answer 14

Change in income

Question 15

A change in the quantity of a g,s,r demanded at every price

Answer 15

Change (shift) in demand

Question 16

A change in the quantity of a g,s,r demanded due to a change in its price.

Answer 16

Movement along the demand curve ( down the line/increasing) v.v

Question 17

The perception and desirability associated with consuming a g,s,r

Answer 17

Tastes and Preferences

Question 18

Market participants who seek to obtain g,s,r.

Answer 18

Buyers

Question 19

The anticipation by individuals and firms of costs and benefits that lie in the future

Answer 19

Expectations

Question 20

When a NPD changes - increasing or decreasing in demand

Answer 20

The demand curve shifts

Question 21

When a price of a good changes - increase or decrease in quantity demanded

Answer 21

Movement along the demand line

Question 22

If the # of buyers increase - demand will ?

Answer 22

Increase

Question 23

If consumers expect an increase in the future - demand will ? V.V

Answer 23

Increase

Question 24

G,s,r that are viewed as replacements for one another.

Answer 24

Substitutes

Question 25

G,s,r that are used or consumed with one another

Answer 25

Complements

Question 26

Does substitutes have a direct or inverse relationship?

Answer 26

Direct

Question 27

Does complements have an direct or inverse relationship?

Answer 27

Inverse

Question 28

If at lease one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, AEHC

Answer 28

Diminishing marginal productivity

Question 29

The overall, or total supply of a g,s,r

Answer 29

Market supply

Question 30

A change in the quantity of a g,s,r supplied at every price. Shift or movement along the line?

Answer 30

Change (shift) in supply

Question 31

A change in the quantity of a g,s,r supplied due to a change in its price. Shift or movement along the curve?

Answer 31

Movement along the supply curve

Question 32

A payment made by the government that does not necessarily require an exchange of economic activity in return

Answer 32

Subsidies

Question 33

A payment made to the government that is the result of economic activity

Answer 33

Tax

Question 34

The inputs used to produce a g,s,r

Answer 34

Resource

Question 35

The knowledge, inventions and innovations that can potentially increase resource productivity.

Answer 35

Technology

Question 36

Market participants who are willing and able to sell g,s,r

Answer 36

Sellers

Question 37

The anticipated future outcomes, including prices, that sellers associate with production of a g,s,r

Answer 37

Sellers expectations