Economics - Micro-Economics Vocabulary Quiz

Types of changes in a market that will cause the entire demand curve to move (shift) to the right or to the left. All consumers of a good, service, or productive resource will be willing and able to purchase more or less or a product at all prices in the market.

• determinants of supply
• Households (resource market)
• Businesses (resource market)
• determinants of demand

Producers of goods and services - sell goods and services to households - earn revenue in exchange for goods and services

• Businesses (resource market)
• Households (resource market)
• Households (product market)
• Businesses (product market)

Types of changes in a market that will cause the entire supply curve to move(shift) to the right or to the left - all sellers of a good, service, or productive resource will be willing and able to supply more or less of their product at all prices in the market

• determinants of demand
• determinants of supply
• Households (resource market)
• Businesses (resource market)

Model economists use to show the characteristics and relationships that exist between households and businesses in the economy

• circular flow diagram
• production possibilities curve
• market demand curve
• market supply curve

Consumers of the productive resources - purchase the use of land, labor, capital, and entrepreneurship from households to the factor market using the revenue they earned in the product market

• Businesses (resource market)
• Households (product market)
• Businesses (product market)
• Households (resource market)

Consumers of goods and services - buy goods and services from businesses - spend the income they earned to buy the goods and services

• Businesses (product market)
• Households (product market)
• Businesses (resource market)
• Households (resource market)

Quantity a seller is willing and able to see at each price

• supply
• supply schedule
• quantity supplied
• demand

Total income from sales of output

• expenditures
• supply
• revenue
• demand

Spending money

• expenditures
• price floor
• demand schedule
• revenue

Point of intersection between the market demand curve and the market supply curve - point at which the quantity demanded by consumers is equal to the quanitity supplied by producers

• Businesses (resource market)
• Households (resource market)
• market clearing (equilibrium) price
• market demand curve