TEST 8 Economics

Question 1

What is the amount of a good that is bought at a certain price under certain conditions

Answer 1

Demand

Question 2

What is the relationship between a good’s price and the amount the people is willing to buy

Answer 2

Demand

Question 3

The relationship between a good’s price and the amount the producers are willing to provide

Answer 3

Supply

Question 4

The 2 types of value

Answer 4

Value in use and value in exchange

Question 5

Value that is directly related to the benefits that owners receive through their use

Answer 5

Value in use

Question 6

What is a particular good in exchange for some other good

Answer 6

Value in exchange

Question 7

The amount of money that a buyer pays a seller for a particular item

Answer 7

Price

Question 8

As one’s supply of a specific good increases the satisfaction derived for each additional unit decreases

Answer 8

Diminishing Marginal Utility

Question 9

The amount of satisfaction that results from a one unit increase tends to become smaller with each additional unit

Answer 9

Marginal Utility

Question 10

The total amount of satisfaction for receiving a particular good is called

Answer 10

Total utility

Question 11

As the price of a good increases the quantity demanded decreases

Answer 11

The law of demand

Question 12

When the price of a good falls consumers tend to buy more of that good or other items because they can do so without giving up anything

Answer 12

Income effect

Question 13

What indicates that people tend to substitute less expensive goods for ones who’s prices has risen

Answer 13

Substitution effect

Question 14

For everyone there is a point in which price becomes the point of consideration

Answer 14

True

Question 15

What is a list of numbers that compare price with quantity

Answer 15

Demand schedule

Question 16

Graphic representation of the quantity of goods purchased at different prices

Answer 16

Demand curve

Question 17

Demand curve goes to what direction

Answer 17

Down right

Question 18

Things that affect a change in demand pg.57-58

Question 19

Taste and preferences affect in quantity demanded

Answer 19

False

Question 20

Population affects in change of quantity supplied

Answer 20

False

Question 21

A good who’s demand is directly related to consumers incomes

Answer 21

Normal good

Question 22

Demand for what type of items decreases as what incomes increases?

Answer 22

Inferior goods

Question 23

A good capable of being use in place of another

Answer 23

Substitute

Question 24

A good often use in conjunction with other

Answer 24

Complement

Question 25

As the price of a good increases the quantity supplied also increases

Answer 25

Law of supply

Question 26

What is a list of numbers that compares price with quantity supplied

Answer 26

Supply schedule

Question 27

Things that affect the change in supply

Question 28

What is called when a government would give money to improve production

Answer 28

Subsidies

Question 29

What is point in which quantity supplied and quantity demanded stay equal

Answer 29

Equilibrium

Question 30

Fall below the equilibrium

Answer 30

Shortage

Question 31

Above the equilibrium

Answer 31

Surplus

Question 32

The sharper the curve, the more what?

Answer 32

Inelastic

Question 33

What allows for goods to be elastic

Answer 33

Substitutes

Question 34

Price ceilings results in what?

Answer 34

Shortage

Question 35

Price floors results in

Answer 35

Surplus

Question 36

Good way to destroy a city

Answer 36

Booming and rent control

Question 37

Signs that are used by consumers and producers to determine how much of a good to buy or sell at a given price and time

Answer 37

Market signals

Question 38

Goods that have a life expectancy of less than three years

Answer 38

Nondurable goods

Question 39

Products that are expected to last at least three years

Answer 39

Durable goods

Question 40

The part of an economy that is controlled by private individuals, businesses, and organizations.

Answer 40

Private sector

Question 41

The part of economy which is controlled by national, state, and local governments

Answer 41

Public sector

Question 42

The reason that a person is willing to trade certain goods wether they are tangible items, or other goods.

Answer 42

Profit motive

Question 43

The value of the best alternative that is foregone when a different alternative is taken

Answer 43

Opportunity cost

Question 44

The wage that will cost people who run their own establishments to hire managers to manage their business for them

Answer 44

Wage of management

Question 45

Total value of a business minus any liability

Answer 45

Equity