Micro Ch_3 Vocab Quiz Principles of Microeconomics

What does 'Ceteris paribus' mean in economics?

• All other things being equal

• The law of supply and demand

• Opportunity cost

• Comparative advantage

What are 'Complements (complementary goods)' in economics?

• Goods that are used together, where the use of one increases the use of the other

• Goods that can replace each other in use

• Goods that have no relation to each other

• Goods that are always sold together

Define 'Consumer surplus' in the context of economics.

• The difference between what consumers are willing to pay and what they actually pay

• The total revenue received by producers from selling goods

• The cost of production for a firm

• The equilibrium price in a competitive market

What is 'Deadweight loss' in economic terms?

• A loss of economic efficiency when the equilibrium outcome is not achievable or not achieved.

• The total revenue generated by a monopoly.

• The additional cost incurred by producing one more unit of a good.

• The total value of goods and services produced in an economy.

How is 'Demand' defined in economics?

• The desire to own something and the ability to pay for it

• The total amount of goods available for sale

• The cost of producing a good or service

• The government's regulation of market prices

What does a 'Demand curve' represent?

• The relationship between the price of a good and the quantity demanded

• The relationship between the supply of a good and the quantity supplied

• The equilibrium point in a market

• The total revenue generated by a firm

What is a 'Demand schedule' in economics?

• A table showing the quantity of a good that consumers are willing to buy at different prices.

• A graph showing the relationship between price and quantity demanded.

• A list of goods and services that consumers plan to purchase.

• A schedule of production for a specific good.

What is meant by 'Economic surplus'?

• The difference between the total revenue and total cost in an economy

• The total amount of goods and services produced in an economy

• The excess of supply over demand in a market

• The total value of all assets owned by individuals in an economy

What is the concept of 'Equilibrium' in economics?

• A state where supply equals demand

• A situation where demand exceeds supply

• A condition where supply exceeds demand

• A scenario where prices are constantly changing

What is 'Equilibrium price' in economic terms?

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

• The price at which demand exceeds supply

• The price at which supply exceeds demand

• The price set by the government