Microeconomics - Vocabulary Quiz

_______ wanting something and being able to pay for it.

• Demand

• Supply

• Desire

• Need

_______ a model depicting the flow of resources and money throughout the economy.

• Circular Flow Diagram

• Linear Flow Chart

• Resource Allocation Model

• Economic Cycle Graph

_______ an acronym used to help us remember which way a demand or supply curve will shift.

• IRDL

• DRIL

• LIRD

• RILD

_______ quantity demanded is equal to quantity supplied.

• Equilibrium

• Surplus

• Deficit

• Shortage

_______ the study of economic behavior of individuals and businesses.

• Microeconomics

• Macroeconomics

• Sociology

• Anthropology

6. _____ as prices increase so does quantity supplied.

• Law of Demand

• Law of Supply

• Law of Diminishing Returns

• Law of Equilibrium

Inverse relationship between price and quantity, as price increases, Quantity demanded decreases.

• Law of Demand

• Law of Supply

• Equilibrium Price

• Price Elasticity

8. _____ a business that is owned by the shareholders, and has a lot of government oversight.

• Corporation

• Sole Proprietorship

• Partnership

• Cooperative

9. _____ a business owned by two or more people.

• Corporation

• Sole Proprietorship

• Partnership

• Franchise

10. _____ a business owned by one person.

• Sole proprietorship

• Partnership

• Corporation

• Limited liability company