Economics Vocabulary Flashcard

Front

The extra cost of producing one additional unit of a good is known as ________.

Back

Marginal Cost

Front

When a small change in price leads to a large change in the quantity demanded, it is called ________.

Back

Elastic Demand

Front

Deadweight Loss refers to: A) Loss of profit B) Loss of economic efficiency C) Loss of goods D) Loss of demand.

Back

Loss of economic efficiency

Front

Elastic Demand occurs when: A) A large change in price leads to a small change in quantity demanded B) A small change in price leads to a large change in quantity demanded C) Price and demand are equal D) Demand is constant.

Back

A small change in price leads to a large change in quantity demanded.

Front

The Law of Supply states that, all else equal, an increase in the price of a good will result in ________.

Back

An increase in quantity supplied

Front

What is Inelastic Demand?

Back

When a change in price has little effect on the quantity demanded of a good.

Front

Utility refers to the satisfaction or benefit derived from consuming a product or service. True or False?

Back

True

Front

Total Cost includes both fixed and variable costs. True or False?

Back

True

Front

Variable Cost varies directly with the level of production. True or False?

Back

True

Front

Explicit Cost includes direct, out-of-pocket expenses like wages, rent, and materials. True or False?

Back

True