Economics Unit 2 Study Guide

A ___________________ is a product that in used in conjunction with another product.

The total output or total product the business needs to sell to cover its total costs

The nature and degree of competition among firms operating in the same industry.

States that output will change as one input is varied while the others are held constant.

The lowest legal wage that can paid to most workers.

Occurs when the quantity supplied is greater than the quantity demanded at a given price

_______________ involve cases of inadequate competition, inadequate information, etc.

The amount of a product that would be offered for sale at all possible prices in the market.

Real or imagined differences between competing products in the same industry.

A set of assumptions and/or relationships that can be represented graphically or algebraically.

The practice of charging customers different prices for the same product

The number of units sold multiplied by the average price per unit.

Shows various quantities purchased at all possible prices that might prevail in the market.

The monetary value of a product as established by supply and demand.

Principle that suppliers normally offer more for sale at high prices and less at low prices.

The _________________ refers to the inverse relationship between price and quantity demanded.

The philosophy that government should not interfere with commerce or trade.

A ___________________ is a product that is interchangeable in use with another product.

Occurs when the quantity demanded is greater than the quantity supplied at a given price.

A situation in which the average cost of production falls as the firm gets larger.

The ____________________ is the maximum legal price that can be charged for a product.

A ________________________ is a partial refund of the original price of the product.

Demand can be shown graphically as a downward sloping demand __________.

Situation where quantity of goods and services supplied is equal to quantity demanded is called

________________________ relates changes in the quantity demanded to changes in price.

Relates changes of dependent variable (quantity) to changes in an independent variable (price).

The area of economic study that deals with individual units in an economy.

____________________ are unprocessed natural products used in production.

Deals with the relationship between the factors of production and output of goods and services.

A measure of the way in which a quantity supplied responds to a change in price.