Economics Vocab

What is micro economics?

• A measure of how much one economic variable responds to changes in another economic variable.

• The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises

• The increase in output that arises from an additional unit of input

• The study of how households and firms make decisions and how they interact in markets

Is there a thing called "The Law of Demand"?

• True

• False

What is the Law of Demand?

• A situation in which quantity supplied is greater than quantity demanded

• Where consumers buy more of a good when its price decreases and less when its price increases

• The cost of producing one more unit of a good.

• The point at which the costs of producing a product equal the revenue made from selling the product.

A measurement of the total goods and services produced within a country is the...

• Marginal Revenue

• Gross Domestic Product (GDP)

• Total Costs (TC)

• Law of Supply

What is supply?

• The amount of goods available

• The increase in output that arises from an additional unit of input

• The cost of producing one more unit of a good

• The financial gain made in a transaction

What is the business cycle?

• A moderate but sustained downturn in the economy. Recessions are part of the economy's normal cycle of ups and downs.

• The situation that occurs when an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment

• The alternating periods of economic expansion and economic recession

• A situation in which unlimited wants exceed the limited resources available to fulfill those wants

All the goods and services produced by a business during a given period of time with a given amount of input is the..

• Variable costs

• Economic expansion

• Total product

• Fixed costs

Which one is the definition for shortage?

• A situation in which quantity supplied is greater than quantity demanded.

• A situation in which quantity demanded is greater than quantity supplied.

Inflation is...

• A general increase in prices and fall in the purchasing value of money.

• A situation in which unlimited wants exceed the limited resources available to fulfill those wants.

• The financial gain made in a transaction.

• A moderate but sustained downturn in the economy. Recessions are part of the economy's normal cycle of ups and downs.

How do you find the Total Cost?

• fixed costs + the profit

• marginal revenue + marginal cost

• fixed costs + variable costs

• variable costs + marginal cost