AP Micro Short Final

According to the law of supply, price and quantity have which relationship?

• Positive

• Negative

• No

• Inverse

What is the maximum legal price of a good or service called?

• Price ceiling

• Price floor

• Equilibrium price

• Market price

According to the law of supply, the points on the curve are known as what?

• Quantity supplied

• Equilibrium price

• Demand points

• Market surplus

What is a model economists use to show the relationships in the economy, where business and households are the actors in the economy who interact in the resource and product market?

• Circular Flow

• Supply and Demand Curve

• Production Possibilities Frontier

• Law of Diminishing Returns

What is the point of intersection between the market demand curve and the market supply curve called?

• Equilibrium

• Surplus

• Deficit

• Monopoly

What law states as the price of a good rises the good consumers are willing and able to buy will decrease?

• Law of demand

• Law of supply

• Law of diminishing returns

• Law of equilibrium

What is it called when there is a larger quantity supplied than there is quantity demanded?

• Surplus

• Shortage

• Equilibrium

• Deficit

What market structure has only a few sellers of a product who dominate the market?

• Oligopoly

• Monopoly

• Perfect Competition

• Monopolistic Competition

What is the minimum legal price set above the equilibrium price that causes surpluses?

• Price floor

• Price ceiling

• Subsidy

• Quota

What is it called when a larger quantity is demanded than there is quantity supplied?

• Shortage

• Surplus

• Equilibrium

• Saturation