NEW
Font size
WorksheetsAP Micro Review -- Unit 2 (Vocabulary)
Total questions: 20
Worksheet time: 40mins
According to an economist, a good's price represents...
The benefit producing the good has for a producer (in terms of dollars)
The cost a consumer pays when they buy a good
An indication of the value placed on the good by society
All of the Above
Supply: Quantity of a good/service that producers are willing to produce for any given price. (Different from "Quantity Supplied")
Supply
Demand
Producer Preference Quantity
Thumbtacks
Economists call someone who creates and supplies goods & services a...
Consumer
Producer
Jerk
Economist
According to the Law of Supply, all else equal, an _________ in price leads to an increase in the quantity supplied
Increase
Decrease
Firms use graphite to make pencils. Therefore, an economist would say that graphite is an _______ in the production of pencils
Input
Output
Good/Service
Opportunity
Tabatha makes wooden tables & chairs for sale to a large number of customers. Since she only has a certain amount of wood (and time), she has to make fewer tables in order to make more chairs... and vice versa. Wooden chairs and tables are production....
Substitutes
Income Effect
Production
Inferior Goods
Sawdust is a highly valued product, used in the making of particleboard. When a firm makes two-by-fours, it will unintentionally create sawdust as well. Sawdust and two-by-fours are production...
complements
substitutes
supply factors (x)
marginal cost
What term do economists use to describe a person who buys goods & services?
Producer
Consumer
Market Regulator
Gullible Fool
Define: "Demand" (as an economist)
Quantity consumers are willing to purchase at any given price (distinguished from Quantity Demanded, which relates to specific price)
Quantity producers are willing to make at any given price (distinguished from Quantity Supplied, which relates to specific price)
Quantity of pickles in a pickle jar
An insistent request
According to the Law of Demand, all else equal, a _________ in price leads to an increase in the quantity demanded
Increase
Decrease
Lucky Charms and Frosted Flakes are two types of cereal; consumers often choose between buying one or the other. Lucky Charms and Frosted Flakes are Demand _____________.
Substitutes
Complements
Luxury Goods
Inferior Goods
When someone buys an iPhone, they have to buy an iPhone charger. iPhones and iPhone chargers are Demand __________________.
Complements
Substitutes
Inferior Goods
Factors of Production
When an economist says that Ketchup is a "normal good" they mean that....
If incomes rise in society generally, we should predict at least a small increase in the demand for Ketchup
If incomes fall in society generally, we should predict at least a small increase in the demand for Ketchup
If incomes rise in society generally, we should predict at least a small decrease in the demand for Ketchup
Normal people eat food with ketchup
An economist might call "Spam" an ___________ good because, when someone's income rises, they will buy less Spam.
Normal
Inferior
Superiorest
Superior
Consumers benefit from participating in markets when they pay less than they would have been willing/able to pay for products. Economists call the amount that Consumers benefit from participation in the market the....
Consumer Surplus
Producer Surplus
Consumer Shortage
Just deserts of the working man
Producers benefit from participating in a market when they get to sell their products for more than their marginal cost. Economists call this the...
Producer Surplus
Consumer Surplus
Benefit of Innovation
Price Ceiling
When an economy does not achieve economic efficiency, economists say there is a _____________ _________.
Deadweight Loss
Tragedy of the Private Sector
Foolishness Alert
Technical Term
If the government sets a legal minimum price for a good or service, economists say the government has set a _________ __________.
Price Floor
Price Ceiling
Point of Non-Selling
Market Equilibrium
If the government sets a legal maximum price for a good or service, economists say the government has set a _________ __________.
Price Floor
Price Ceiling
Point of Non-Selling
Market Equilibrium
Economists use which of the following terms to refer to the PRICE level at which Quantity Demanded = Quantity Supplied
Equilibrium Price
Equilibrium Quantity
Demand
Supply
