New EPF U 1.3

The desire to have some good or service and the ability to pay for it

• supply

• equilibrium

• demand

• quantity demanded

According to the Law of Demand, when prices drop...

• demand will also drop

• demand will increase

• quantity demanded is unchanged

• supply increases

The willingness and ability of a producer to make a product is referred to as

• quantity supplied

• quantity demanded

• supply

• demand

When producers offer more of a good as its price increases and less as its price falls, this defines the

• law of demand

• law of supply

• change in demand

• change in supply

Point at which supply and demand come together

• price ceiling
• excess demand
• equilibrium
• disequilibrium

A rise in prices, an increase in the average price

• deflation
• recession
• stagnation
• inflation

a cycle or series of cycles of economic expansion and contraction

• Market Oscillation
• Business Cycle
• Financial Course

• Economic Wave

model of economics shows how money moves through an economy in a constant loop from producers to consumers and back again

• Circular Flow Model

• Zigzag Flow Model

• Linear Flow Model

• Spiral Flow Model

During which phase of the business cycle do industries increase the amount they produce? ​ (a)  

• Expansion
• Recession
• Contraction

Which phase of the Business Cycle includes the economy slowing down?

• Prosperity
• Recession
• Depression
• Recovery