Economics Final Review

1. The ________________ says that quantity demanded varies inversely with price, other things constant.

• Demand

• Law of Demand

• Supply

• Law of Supply

The more of a good a person consumes per period, the smaller the increase in total utility from consuming one more unit, other things constant.

• Demand

• Law of Demand

• Marginal Utility

• Law of diminishing marginal utility

A curve or line showing the quantities of a particular good demanded at various prices during a given time period.

• Demand Curve

• Quantity demanded

• Supply Curve

• Supply Demanded

Which of the following is the correct formula for the elasticity of demand?

• Change in the price of the product/ change in the quantity demanded

• Change in the quantity demanded/ change in the price of the product

• % change in the price of the product/ % change in the quantity demanded

• % change in the quantity demanded/ % change in the price of the product

Indicates how much of a good producers are willing and able to offer for sale per period at each possible price, other things constant

• Demand

• Law of Demand

• Supply

• Law of Supply

Increase or decrease in supply resulting from a change in one of the determinants of supply other than the price of the good.

• Supply

• Elasticity of Supply

• Movement along a supply curve

• Shift of a supply curve

A period during which at least one of a firm’s resources is fixed

• Short run

• Long run

• Total product

• marginal product

The more of one resource is added to all other resources, marginal product eventually declines.

• Short run

• Long Run

• Law of diminishing returns

• Marginal product

Any production cost that changes as output changes

• Fixed cost

• Variable cost

• Total cost

• Marginal cost

The formula (change in total cost/change in quantity) = ?

• Fixed cost

• Variable cost

• Total cost

• marginal cost