Key Terms S2 Quiz

What are complementary goods?

• Goods that are purchased to support/go with another product

• Goods that are not related to each other

• Goods that are substitutes for each other

What does contraction in demand refer to?

• Movement along the demand curve to the right

• Movement of the demand curve to the left

• Movement along the demand curve to the left

What is the definition of effective demand?

• The willingness and ability to buy a product

• The desire to buy a product

• The total demand for a product

What is equilibrium in economics?

• The point at which the supply and demand curves are not equal

• The point at which the supply and demand curves cross/intersect

• The point at which supply exceeds demand

What does price elasticity of demand measure?

• Responsiveness of quantity demanded to a change in price

• Responsiveness of quantity supplied to a change in price

• Quantity demanded is greater than percentage change in price

What are public goods?

• Goods that are freely available

• Goods that are excludable and rival

• Goods that are non-excludable and non-rival

What is the definition of social costs?

• Private costs + external costs

• Private benefits + external benefits

• Costs incurred by the government

What is the meaning of monopolistic competition?

• A market structure where many firms compete with similar products

• A market structure with a single supplier

• A market structure with no competition

What does the term 'shift in demand' refer to?

• A change in quantity demanded caused by a change in price

• A change in quantity supplied caused by a change in price

• A change in demand caused by something other than price

What is the definition of utility?

• The total cost of production

• The satisfaction gained from consuming a product

• The total revenue generated from sales