Microeconomics review

People who want to buy goods and services to satisfy their wants.

• Producers

• Consumers

• Sellers

• Stores

The amount people pay to buy a good or service and the amount sellers receive when they sell goods and services.

• Cost

• Amount

• Money

• Price

The different quantities or amounts of a resource, good, or service that consumers are willing and able to buy at various prices during a specific time period.

• Consumer

• Demand

• Price

• Producer

The law of demand states that as the price _____________, the demand decreases. Similarly, as the price decreases, the demand _________________.

• Increases, increases

• decreases, decreases

• increase, decrease

• decrease, increase

This demand schedule shows that as the price goes increases, the demand ____________.

• increases

• stays the same

• decreases

• fluctuates

What are two main reasons demand might change?

• The income and purchase effect

• The substitution and exchange effect

• The better buy and income effect

• The income and substitution effect

Which of the following is NOT a determinant of demand?

• Change of population

• Change in taste or fad

• Change in climate

• Change in income

• Change in price of a sustitute good

The people and businesses who make goods and services.

• Producers

• Consumers

• Buyers

• Capital Goods

Occur naturally in and on the earth and are used to produce goods and services.

Examples include trees, soil, minerals, (like copper, aluminum, iron, gold) air, water, fossil fuels (like oil, coal, and natural gas) as well as the space provided by a plot of land.

• Human resources

• Capital Goods

• Natural goods

• Resource Goods

The people who do the mental and/or physical work to produce goods and services. 

• Politicians

• Human resources

• Capital goods

• Natural goods