Vocabulary: Markets, Equilibrium, and Prices

What is the term for the point at which the demand for a product or service is equal to the supply of that product or service?

• Disequilibrium

• Equilibrium

• Surplus

• Shortage

Which of the following describes a situation where consumers want more of a good or service than producers are willing to make available at a particular price?

• Surplus

• Shortage

• Equilibrium

• Price Ceiling

What is a maximum price that can legally be charged for a good or service called?

• Price Floor

• Market Price

• Price Ceiling

• Equilibrium Price

What is the term for a market in which goods are sold illegally, without regard for government controls on price or quantity?

• Free Market

• Black Market

• Disequilibrium

• Rationing

Which of the following is a minimum price that an employer can pay a worker for an hour of labor?

• Price Ceiling

• Minimum Wage

• Market Price

• Equilibrium Price

What is the term for a sudden shortage of a good?

• Supply Shock

• Surplus

• Excess Demand

• Disequilibrium

What is the term for a system of allocating scarce goods and services using criteria other than price?

• Free Market

• Rationing

• Black Market

• Equilibrium

What is the term for the price at which the quantity of a product demanded by consumers equals the quantity supplied by producers?

• Market Price

• Equilibrium Price

• Price Ceiling

• Price Floor

Which of the following describes a situation that exists when the quantity demanded of a product exceeds the quantity supplied, thus producing a shortage?

• Excess Supply

• Equilibrium

• Excess Demand

• Surplus

What is the term for the quantity of a good or service demanded by consumers and supplied by producers when the market is in equilibrium?

• Market Price

• Equilibrium Quantity

• Disequilibrium

• Surplus