Unit 2 Vocabulary Quiz Review

What is the definition of "demand" in economics?

• The amount of goods producers are willing to sell at a certain price

• The amount of goods consumers are willing and able to buy at a certain price

• The total cost of producing a good

• The price at which supply equals demand

Which term describes goods that are used together, such as peanut butter and jelly?

• Substitute

• Complement

• Surplus

• Product Market

What does the "law of supply" state?

• As price increases, quantity supplied decreases

• As price increases, quantity supplied increases

• As price decreases, demand increases

• As price increases, demand increases

What is a "price ceiling"?

• The lowest legal price a good can be sold at

• The highest legal price a good can be sold at

• The price at which supply equals demand

• The price at which surplus occurs

Which of the following best defines "surplus" in a market?

• When demand is greater than supply

• When supply is greater than demand

• When supply equals demand

• When prices are at equilibrium

What does the "law of demand" state?

• As price increases, quantity demanded increases

• As price increases, quantity demanded decreases

• As price decreases, supply increases

• As price decreases, supply decreases

Which of the following is an example of a substitute good?

• Coffee and sugar

• Butter and margarine

• Printer and ink

• Shoes and socks

What is the "equilibrium price"?

• The price at which quantity supplied equals quantity demanded

• The highest price a good can be sold at

• The lowest price a good can be sold at

• The price at which surplus occurs

Which market is where households sell resources and businesses buy them?

• Product Market

• Factor Market

• Surplus Market

• Demand Market

What does a "demand curve" show?

• The relationship between price and quantity supplied

• The relationship between price and quantity demanded

• The total cost of production

• The amount of surplus in a market