Econ 1

What is the term for the state in which market supply and demand are balanced?

• Elasticity

• Scarcity

• Equilibrium

• Disequilibrium

What is the equilibrium price?

• $3.00

• $1.00

• $5.00

• None of these

Demand is highest at which price?

• $0.50

• $1.00

• $3.00

• $3.50

Supply is highest at which price?

• $0.50

• $1.50

• $3.00

• $3.50

Match the following

• Supply

• Amount of a good or service consumers are able and willing to buy

• Law of Supply

• Amount of a good or service available for sale

• Demand

• Demand goes up as price decreases and vice versa.

• Law of Demand

• Supply goes up as price increases

Organize these options into the right categories

Groups:

(a) True

,

(b) False

• As price decreases, demand increases

• As price increases, supply decreases

• As price decreases, supply increases

• As price increases, supply increases

• As price decreases, demand decreases

• As price increases, demand decreases

• As price decreases, supply decreases

• As price increases, demand increases

What is the term for the situation where the quantity demanded is greater than the quantity supplied?

• Corporations

• Shortage

• Aggregate demand

• Open market operations

What is the term for the total demand for goods and services within a particular market?

• Fiscal policy

• Currency

• Aggregate demand

• Inflation

What is the term for the total supply of goods and services within a particular market?

• The federal reserve

• Aggregate supply

• Monetary policy

• Law of Supply

What is the term for the increase in the general price level of goods and services in an economy over a period of time?

• Law of Supply

• Inflation

• Law of Demand

• Elasticity