vocab unit 2

Question 1

The amount of a good or service that customers are willing and able to purchase at all prices.

Answer 1

demand

Question 2

The idea that price and quantity demanded of a good or service are inversely related.

Answer 2

law of demand

Question 3

A shift in the amount of a good or service demanded that is achieved by a change in price.

Answer 3

change in Q-demanded

Question 4

A shift in the amount of a good or service that is demanded at all prices.

Answer 4

change in demand

Question 5

Goods or services that are used in place of a different good or service.

Answer 5

substitutes

Question 6

Goods or services that are used alongside of a different good or service

Answer 6

compliments

Question 7

The amount of a good or service that businesses are willing and able to sell at all prices

Answer 7

supply

Question 8

The idea that price and quantity supplied of a good or service are directly related.

Answer 8

law of supply

Question 9

The amount of a good or service that sellers are willing and able to sell at one specific price

Answer 9

quantity supplied

Question 10

A shift in the amount of a good or service supplied that is achieved by a change in price.

Answer 10

change in q supplied

Question 11

A shift in the amount of a good or service that is supplied at all prices.

Answer 11

change in supply

Question 12

Money given to the sellers of a good or service, typically as an incentive to increase or maintain production levels.

Answer 12

subsidy

Question 13

The price for a good or service at equilibrium

Answer 13

equilibrium price

Question 14

The quantity of a good or service available at equilibrium.

Answer 14

equilibrium quantity

Question 15

A situation in which the quantity supplied of a good or service is greater than the quantity demanded.

Answer 15

surplus

Question 16

A situation in which the quantity demanded of a good or service is greater than the quantity supplied.

Answer 16

shortage

Question 17

A maximum price allowed for a good or service.

Answer 17

price ceiling

Question 18

A minimum price allowed for a good or service.

Answer 18

price floor

Question 19

A market structure in which many sellers are supplying identical goods or services.

Answer 19

perfect competition

Question 20

A market structure in which many sellers are supplying goods or services that are different in inconsequential ways.

Answer 20

monopolistic competition

Question 21

When businesses in a given market compete on style, service or location instead of competing with price.

Answer 21

non price competition

Question 22

A market structure in which a few sellers control the market for a good or service.

Answer 22

oligopoly

Question 23

When businesses in a market work together to fix prices to increase their profits.

Answer 23

collusion

Question 24

A business type in which one person has total control and ownership of the business

Answer 24

sole proprietorship

Question 25

The amount of responsibility an individual has for the debts of a business.

Answer 25

unlimited liability

Question 26

A business type in which two or more people share control and/or ownership of the business.

Answer 26

partnership

Question 27

A business type in which control and ownership of a business is determined through ownership of share of stock.

Answer 27

corporation

Question 28

Partial ownership of a corporation that allows an investor to participate in the decisions made for that corporation.

Answer 28

stock

Question 29

When the profits of a corporation are divided up and distributed according to the percentage of the company’s stock owned by an individual.

Answer 29

dividend