5 Written Questions

1. Supply increases
2. Supply
3. marginal utility diminishes when we consume more of a product
4. subsidy
5. a government minimum price that can be charged for goods or services

5 Matching Questions

1. What three things affect supply
2. What is the benefit of a market economy when it operates without restriction
3. What are products called when they can be used in place of one another
4. How does the government in a command economy act differently from a competitive market economy
5. What is the only factor that can directly cause a change in the quantity of a product

1. a Substitutes
2. b shortages and surpluses are eliminated
3. c A change in the product's own price
4. d cost of resources, government policies, expectations
5. e government planners determine the total quantity of goods produced, government limits product variety to keep production costs down, not enough items are produced to satisfy everyone

5 Multiple Choice Questions

1. Right
   1. Why does a demand curve usually slope downward
   2. Which direction does the demand curve shift when demand goes up
   3. What does the law of demand say
   4. Why does the supply curve slope upward
2. Complements
   1. What is the point where supply and demand achieve balance
   2. What is one of the strengths of the price system
   3. What does the law of demand say
   4. What is the term for products that are used together
3. utility
   1. What is the term for the pleasure, usefulness, or satisfaction we get from using a product
   2. What is the term that describes how supply changes in response to changes in price
   3. What is the term for products that are used together
   4. What is the only factor that can directly cause a change in the quantity of a product
4. Demand decreases
   1. When the price of one product increases, what happens to demand for its complement
   2. What is the point where supply and demand achieve balance
   3. Why are prices neutral in a competitive market economy
   4. What is the term for products that are used together
5. marginal utility
   1. What is the total demand of all consumers for a company's product or service called
   2. What is the term for additional satisfaction from each use of a product or service you buy
   3. What is the desire, willingness, and ability to buy a good or service called
   4. What is the term for products that are used together

5 True/False Questions

1. What kinds of items generally have elastic demand → Quantity demanded and price move in opposite directions

   True        False

2. What is a supply curve → a graph that shows the amount of a product that would be supplied at all possible prices in the market

   True        False

3. What does a surplus signal → Price is too high

   True        False

4. Why does a demand curve usually slope downward → People are normally willing to buy less of a product if the price is high and more if the price is low.

   True        False

5. What is a graph that shows the amount of a product that would be bought at all possible prices in the market called → demand curve

   True        False