5 Written Questions
5 Matching Questions
- Unit elastic demand
- Change in the quantity supplied
- Marginal cost
- Inelastic demand
- a A situation in which an increase or a decrease in price will not significantly affect demand for the product.
- b a movement along the supply curve that occurs in response to a change in price
- c the extra cost of adding one unit. (the opportunity cost of producing one more unit of it)
- d the price elasticity of demand is one, so the percentage change in quantity equals the percentage change in price
- e the study of how people seek to satisfy their needs and wants by making choices
5 Multiple Choice Questions
- a measure of how much the quantity demanded of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded divided by the percentage change in income
- Goods and services are produced by using productive resources such as Land, Labor, Capital, and Entrepreneurship.
- natural resources used to produce goods and services
- Choosing the alternative that has the greatest value from among comparable-quality products.
- Tools, instruments, machines, buildings, and other constructions that businesses use to produce goods and services.
5 True/False Questions
Money → Any commodity or token that is generally acceptable as a means of payment.
Normal good → a good for which the demand increases as income rises and decreases as income falls
Equilibrium quantity → the price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy
Producer surplus → consumer surplus + producer surplus
Relative price → The price of a specific good or service in comparison to the prices of other goods and services.(a realtive price is an opportunity cost)