Midterm Review Mini Unit 3

Which of the following defines demand curve?

• The amount of a good or service consumers are willing and able to buy at a given price

• The amount of a good or service businesses are willing and able to produce at a given price

• A graph showing how the amount of a good or service demanded changes with a change in price

• A graph showing how the amount of a good or service supplied changes with a change in price

Which of the following best defines supply curve?

• The amount of a good or service consumers are willing and able to buy at a given price

• The amount of a good or service businesses are willing and able to produce at a given price

• A graph showing how the amount of a good or service demanded changes with a change in price

• A graph showing how the amount of a good or service supplied changes with a change in price

Which of the following best defines quantity demanded?

• The amount of a good or service consumers are willing and able to buy at a given price

• The amount of a good or service businesses are willing and able to produce at a given price

• A graph showing how the amount of a good or service demanded changes with a change in price

• A graph showing how the amount of a good or service supplied changes with a change in price

Which of the following best defines quantity supplied?

• The amount of good or service consumers are willing and able to buy at a given price

• The amount of a good or service businesses are willing and able to produce at a given price

• A graph showing how the amount of a good or service demanded changes with a change in price

• A graph showing how the amount of a good or service supplied changes with a change in price

Which of the following best defines the law of demand?

• As price increases, quantity demanded decreases

• As price increases, quantity demand increases

• How a change in price effects the quantity demanded for a good or service

• How a change in price effects the quantity supplied for a good or service

Which of the following best defines the law of supply?

• As price increases, quantity supplied decreases

• As price increases, quantity supplied increases

• How a change in price effects the quantity demanded for a good or service

• How a change in price effects the quantity supplied for a good or service

In a market economy, the forces of supply and demand interact to determine:

• Balance

• Interest rates

• Price

• Quantity

Which of the following best defines shortage?

• The price at which the quantity supplied equals the quantity demanded

• The quantity at which the price offered by firms equals the price consumers are willing to pay

• When the quantity supplied is greater than the quantity demanded

• When the quantity demanded is greater than the quantity supplied

Which of the following best defines surplus?

• The price at which the quantity supplied equals the quantity demanded

• The quantity which the price offered by firms equals the price consumers are willing to pay

• When the quantity supplied is greater than the quantity demanded

• When the quantity demanded is greater than the quantity supplied