Economics Quiz Practice - Unit I

Front

What is opportunity cost?

Back

The value of the next best alternative that must be given up.

Front

Define supply.

Back

How much of a good or service producers are willing to offer for sale.

Front

Define demand.

Back

The quantity of a good or service that consumers are willing and able to purchase.

Front

What is market equilibrium?

Back

The price and quantity at which supply equals demand.

Front

Explain price elasticity.

Back

How responsive the quantity supplied or demanded is to a change in price.

Front

What is a market failure?

Back

A situation where markets fail to allocate resources efficiently.

Front

Define public goods.

Back

Goods that are available to all without reducing the quantity available to others.

Front

What is an externality?

Back

A side effect of an economic activity that affects third parties.

Front

Define subsidy.

Back

A government payment that supports a particular activity or market.

Front

What is a tax?

Back

A charge imposed by the government to discourage certain behaviors or fund public goods.