Basic Economic Vocabulary Quiz

What is the definition of Supply?

• The measure of how much quantity demanded changes in response to price.

• The quantity of a good or service that consumers are willing to buy.

• The quantity of a good or service that producers are willing and able to offer.

• The point where quantity supplied equals quantity demanded.

What does Demand refer to?

• The quantity of a good or service that producers are willing to offer.

• The gap between what buyers pay and what sellers receive.

• The situation where quantity supplied exceeds quantity demanded.

• The quantity of a good or service that consumers are willing and able to buy.

What is Equilibrium?

• The situation where quantity demanded exceeds quantity supplied.

• A group that tries to influence public policy.

• The point where the quantity supplied equals the quantity demanded.

• A legal maximum price that can be charged for a good.

What does Elasticity measure?

• The legal minimum price that can be charged for a good.

• The gap between buyers' and sellers' prices.

• The situation where quantity supplied exceeds quantity demanded.

• How much quantity demanded or supplied changes in response to price.

What is a Surplus?

• The situation where quantity demanded exceeds quantity supplied.

• The situation where quantity supplied exceeds quantity demanded.

• A mandatory financial charge imposed by a government.

• Allocating goods and services when demand exceeds supply.

What does Rationing refer to?

• The allocation of goods and services when demand exceeds supply.

• The gap between what buyers pay and what sellers receive.

• The legal maximum price that can be charged for a good.

• The measure of how much quantity supplied changes.

What is a Tax?

• A mandatory financial charge imposed by a government.

• A group that tries to influence public policy.

• The quantity of a good or service that consumers buy.

• A legal minimum price that can be charged.

What does Wedge refer to in economics?

• The situation where quantity supplied exceeds quantity demanded.

• The point where quantity supplied equals quantity demanded.

• A legal maximum price that can be charged.

• The gap between what buyers pay and what sellers receive due to a tax.

Who is considered a Consumer?

• An individual who purchases goods and services for personal use.

• An individual who creates goods and services.

• A group that tries to influence public policy.

• An individual who imposes taxes.

What is a Price Ceiling?

• The measure of how much quantity demanded changes.

• The situation where quantity demanded exceeds quantity supplied.

• A legal maximum price that can be charged for a good.

• A legal minimum price that can be charged for a good.