Economics Quiz

What does "ceteris paribus" mean?

• All things being equal

• A legal maximum price

• A graphic representation of demand

• A surplus in the market

What are "complements" in economic terms?

• Goods that are often used together

• A legal minimum price

• A table showing a range of prices

• Resources used to produce goods

What is "consumer surplus"?

• The extra benefit consumers receive from buying a good or service

• The loss in social surplus from inefficient markets

• The relationship between price and quantity demanded

• A legal maximum price

What is "deadweight loss"?

• The loss in social surplus from inefficient markets

• A legal minimum price

• A surplus in the market

• The resources used to produce goods

What does the "demand curve" represent?

• The relationship between price and quantity demanded

• A legal maximum price

• The resources used to produce goods

• The loss in social surplus from inefficient markets

What is "equilibrium price"?

• The price where quantity demanded equals quantity supplied

• A legal minimum price

• The extra benefit consumers receive from buying a good

• The loss in social surplus from inefficient markets

What is an "inferior good"?

• A good where quantity demanded falls as income rises

• A good where quantity demanded rises as income rises

• A legal maximum price

• The resources used to produce goods

What is the "law of demand"?

• Higher price leads to lower quantity demanded

• Higher price leads to greater quantity supplied

• A legal minimum price

• The resources used to produce goods

What is a "price ceiling"?

• A legal maximum price

• A legal minimum price

• The extra benefit consumers receive from buying a good

• The loss in social surplus from inefficient markets

What is producer surplus?

• The total number of units consumers are willing to purchase at a given price

• The extra benefit producers receive from selling a good or service

• A good that can replace another to some extent

• The sum of consumer surplus and producer surplus