Micro Economics Unit 2 Chapters 4-6 Basic Vocab and Concepts

Question 1

Elasticity is

Accepted Answer

how much sellers respond to price, how much buyers respond to price

Question 2

two goods in which an increase in price for one decrease the demand for the other?

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complements

Question 3

The amount of a good or service buyers are willing and able to buy?

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quantity demanded

Question 4

Price X Quantity =

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total revenue

Question 5

Legal maximum price at which a good can be sold?

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price ceiling

Question 6

a table that shows the relationship between price of a good and quantity demanded?

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demand schedule

Question 7

the manner in which the burden of tax is shared among participants in a market?

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tax incidence

Question 8

Who pays a luxury tax?

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buyers

Question 9

The measure of how much consumers respond to price?

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Elasticity

Question 10

Demand curve shifts to the right indicates

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increase in demand

Question 11

How the burden of tax is distributed among various people who make up the market

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tax incidence

Question 12

The burden of tax falls on whomever is more

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inelastic

Question 13

When the government levies a tax on a good, equilibrium quantity

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rises

Question 14

Taxes

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makes business less profitable

Question 15

A group of buyers and sellers of a particular good or service?

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Market

Question 16

a situation where quantity supplied is greater than demanded?

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surplus

Question 17

A shift to the left with a supply curve indicates

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decrease in supply

Question 18

the amount of a good or service a seller is willing and able to sell?

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quantity supplied

Question 19

a good in which an increase in income creates a decrease in demand?

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inferior

Question 20

The legal minimum a good can be sold?

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price floor

Question 21

Cues are largely indicators of what?

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shortage

Question 22

"The best way to destroy a city other than bombing"

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rent control

Question 23

Two goods in which an icrease in the price of one leads to higher demand for the other

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substitutes

Question 24

Demand is higher than supply creating a

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shortage

Question 25

The purpose of price is to?

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allocate resources

Question 26

name for where the supply and demand curves intersect?

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equilibrium

Question 27

A table that shows the relationship between price and quantity supplied?

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supply schedule

Question 28

When a price ceiling is set below equilibrium?

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binding constraint

Question 29

a shift to the left in the demand curve indicates

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decrease in demand

Question 30

A shift to the right on the supply curve indicates?

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increase in supply

Question 31

Supply is higher than demand creating a

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surplus

Question 32

Demand is considered elastic when elasticity is

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greater than one

Question 33

Minimum wage is a

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price floor

Question 34

If the demand for a good rises with income it is a__________?

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Normal

Question 35

A market with so many buyers and sellers each has a negligible impact on market price?

Accepted Answer

Competitive Market

Micro Economics Unit 2 Chapters 4-6 Basic Vocab and Concepts

Questions 35

Micro Economics Unit 2 Chapters 4-6 Basic Vocab and Concepts

Questions 35