2/29-Econ Vocab Review 1

How will scarcity of a capital good impact price?

• Price would go up
• Price would go down
• Price would stay the same
• You wouldn't sell any

How much people want something

• supply
• demand

The making, buying and selling of goods and services

• economics
• inflation
• market
• barter

Scarcity is defined as a limited supply of resources and...

• limited wants for those resources

• unlimited resources

• limited resources

• unlimited wants for available resources

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

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

• supply

• equilibrium

• demand

• quantity demanded

A designer raises the price of jeans by 50%. This will likely lead to a:

• Shortage

• Surplus

Define Surplus

• a consumer's willingness to pay a set price for a specific good or service

• the amount of product that a producer is willing and able to sell in the marketplace

• more items available for sale than people want to purchase

• more people want an item than is available for purchase

An effective price floor must be set above equilibrium, resulting in:

• a shortage
• a surplus
• limited choices
• None of the above

What is inflation?

• rise in all goods purchased

• decrease in prices

• when prices stagnate

• rise in general prices