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WorksheetsSupply, Demand, and Economic Choices
Total questions: 83
Worksheet time: 1hrs 5mins
The amount of a good or service that consumers are willing and able to buy at a certain price is called...
(a)
What do you call things that incite or motivate someone to make a choice?
(a)
What is given up when a choice is made; the next highest valued alternative is called...
(a)
The amount of a good or service that producers are willing and able to sell at a certain price is called...
(a)
The term for the combination of resources to make goods or provide services is
Consumption
Opportunity Cost
Production
Scarcity
The inability to satisfy all wants at the same time because resources and goods are limited is called...
(a)
The factors of production that are used in the production of goods & services. Types include capital, human, natural, and entrepreneurship.
Prices
Resources
Incentives
Choices
Study of how people meet their wants and needs.
(a)
Person or business that makes and sells product(s)
market
consumer
traditional economy
producer
Organized way for producers and consumers to trade goods and services
(a)
Money a company has left over after subtracting the costs of doing business
opportunity cost
revenue
profit
incentive
Money earned by selling goods and services
profit
revenue
supply
opportunity cost
Act of concentrating on a limited number of goods or activities
(a)
Economy in which people make economic decisions based on their customs and habits
Traditional economy
Market economy
Command economy
Mixed economy
Economy in which individual consumers and producers make all economic decisions
Traditional economy
Market economy
Command economy
Mixed economy
Economy in which the central government makes all basic economic decisions
Traditional economy
Market economy
Command economy
Mixed economy
Economy that combines elements of traditional, market, and command economic systems.
Traditional economy
Market economy
Command economy
Mixed economy
work done for someone else in exchange for payment
(a)
When prices go down, quantity demanded increases. When prices go up, quantity demanded decreases.
Law of Demand
Demand
A graph that shows how much of a good or service an individual will buy at each price.
demand curve
demand schedule
A table showing how much of an item an individual is willing to purchase at each price.
substitution effect
income effect
demand curve
demand schedule
The willingness to buy a good or service and the ability to pay for it.
Law of Demand
Demand
Goods that consumers demand more of when their incomes rise.
(a)
Goods that consumers demand less of when their incomes rise.
(a)
Goods and services that can be used in place of each other.
(a)
Goods that are used together, so a rise in demand for one increases the demand for the other.
normal goods
inferior goods
substitutes
complements
The change in the amount that consumers will buy because the purchasing power of their income changes.
income effect
substitution effect
change in demand
normal goods
Term describing demand when the quantity demanded CHANGES LITTLE as price changes.
elastic
inelastic
Individuals and businesses have the right to own real and personal property, as well as the means of production, without government interference
Partnership
Private Property
Entrepreneur
Proprietorship
Someone who takes a risk to produce goods and services in search of a profit
(a)
Consumers determine, through purchases, what goods and services will be produced
(a)
Market in which goods & services are bought & sold?
Economic Interdependence
Product Markets
Factors of Production
Factor Markets
Money received by a government from taxes and non-tax sources to enable it to undertake government expenditures?
Economic Activity
Gross-Domestic Product (GDP)
Economic Growth
Government Revenue
Social Science dealing with how people satisfy seemingly unlimited & competing needs & wants with the careful use of scarce resources
Cash Money
Economics
Government Revenue
Gross Domestic Product
the total value of goods produced and services provided in a country during one year.
Revenue
Capital Goods
Government Revenue
Gross Domestic Product (GDP)
Diagram representing all possible combinations of goods & services an Economy can produce when all productive resources are fully employed
Production Possibilities Curve
Bell Curve
Human Capital
Economic Growth
Alternative that must be given up when one choice is made rather than another choice?
Consumerism
Trade-Offs
Economic Growth
Market Factors
Tools, Equipment & Factories used in the production of goods & services?
Labor
Land
Capital
Market Factors
Increase in a nation's total output of goods & services over time?
Gross Domestic Product
Production Possibilities Curve
Productivity
Economic Growth
Sum of people's skills, abilities, health, & motivation?
Standard of Living
Market Factors
Human Capital
Human Needs
Comparison of the cost of an action to its benefits?
Market Factors
Cost-Benefit Analysis
Trade-Offs
Economic Model
What is one characteristic of a Traditional economy?
Production decisions are made by the government
Families are responsible for producing their own goods
It relies entirely on market forces
It is the same as a command economy
Which of the following describes an eventual decline in the productivity of factor inputs as additional units of variable factors are added to fixed resources?
Law of diminishing marginal utility
Law of diminishing marginal returns
Laffer curve
Law of diminishing total product
As additional units of a product are consumed, during a given period of time, the additional satisfaction decreases.
Income Effect
Law of Diminishing Marginal Utility
Substitution Effect
Variable
A shift to the right in the supply curve across all price levels
Increase in Supply
Decrease in Supply
Law of Demand
Elasticity of Supply
Payments that support a business or market
Quotas
Tariffs
Subsidies
Taxes
What is the law of supply?
Price and quantity have a negative relationship
Price and quantity have a positive relationship
Price and quantity are unrelated
Price and quantity move in the opposite direction
Arises when using a good creates spillover costs on other people
Negative consumption externality
Negative production externality
Positive consumption externality
Positive production externality
A student graduates from college and starts a profitable new business She creates jobs for three workers Those jobs are
a negative externality
a sign of market efficiency
a form of nonprice competition
a positive externality of her education
People in your community shoplift at local stores.
positive externality
negative externality
Businesses provide government with...
taxes
sales
private goods & services
interest
In terms of resources, what do households provide for businesses?
loans
savings
labor
private goods
Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model?
Product Market
Factor Market
Firms
Individuals
What might cause the supply curve to shift left?
price of a complementary good decreases
large number of producers enter the market
computer processing improves production
a new law is passed requiring all new motorcycles to have back-up cameras
Which of the following leads to an decrease in supply?
an increase in the cost of raw materials
diminishing marginal returns
a decrease in the cost of raw materials
a change in the law of supply
As opposed to movement along the supply curve, a change (shift) in the entire supply curve is a result of ____.
an increase in price
a change in price and availability
a decrease in price
a change in something other than price
Which of these do the producers of an item hope to achieve when adopting new technology?
a shift of the supply curve for that item to the left
repeal of the subsidy for that item
inelasticity of supply of that item
a shift of the supply curve for that item to the right
What affect do excise taxes on production usually have on the supply curve?
decreases supply, supply curve shifts left
increases supply, supply curve shifts left
decreases supply, supply curve shifts right
increases supply, supply curve shifts right
Which of these best describes the influence of high prices on the behavior of producers?
High prices are an incentive for producers to produce more.
Producers will use fewer raw materials and less labor
High prices are an incentive for producers to produce less.
Prices have no incentive for producers.
Which of the following supply curves demonstrates a decrease in the quantity supplied?
An increase in supply is indicated by which graph?
A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?
Assume the image is showing the market for apples. Which of the headlines could indicate the pictured shift is occurring in the market?
Pesticides on apples linked to mouth cancer.
Storms destroy apple orchards.
An apple a day really does keep the doctor away.
New genetic strain leads to apple trees that produce twice as many apples.
Which of these best describes the law of demand?
if prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
if prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
there is no law of demand, each situation is unique and demand and prices cannot be predicted
prices will go up for certain goods when quantity demanded goes up and vice versa
A change in the price of a good causes people to buy more or less of an item. This best describes the concept of
the demand curve
change in quantity demanded
change in demand
elasticity
Elasticity refers to
how producers of goods and services react to price changes
how consumers of goods and services react to price changes
how far a supply of scarce goods can be stretched
how often the price of a good or service changes when quantity demanded changes
Which of these demonstrates elastic demand?
a sharp increase in the price of milk causes a large drop in the quantity demanded for milk
the price of homes steadily increase but the quantity demanded for homes does not change
car dealerships cut prices to clear out previous year models and consumers rush to dealerships to take advantage of the sales
gas prices increase in the summer as more people want to go on road trips but the increases do not deter people from buying less gas
Which of these shows a decrease in the quantity demanded?
Which of these shows an increase in the quantity demanded?
What goes at point 4
Factors of Production
Income
Revenue
wages, intrest, revenue, profit
What goes at point 5
Spending
Income
Factors of Production
Goods and services
Which of these is an example of an inferior good?
