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Econ Chapter 3 Vocabulary Part 1

Total questions: 19

Worksheet time: 10mins

Name
Class
Date
1.

A market in which there are many buyers and sellers of the same goods and services is called a:

a)
Duopoly market
b)
Oligopolistic market
c)
Monopolistic market
d)

Competitive market

2.

An economic model that shows how a competitive market behaves is called a:

a)
supply and demand model
b)
consumer surplus model
c)
price elasticity model
d)
market equilibrium model
3.

What does market equilibrium mean?

a)
Market equilibrium occurs when prices are set by government regulations.
b)
Market equilibrium is when demand exceeds supply.
c)
Market equilibrium is the point where production costs are minimized.
d)
Market equilibrium is the point where supply equals demand.
4.

What is a demand schedule?

a)

A demand schedule is a table of consumer income levels.

b)
A demand schedule is a table showing the quantity of a good that consumers will buy at different prices.
c)

A demand schedule is a comprehensive and complete list of all available goods in a market.

d)
A demand schedule is a graph showing consumer preferences over time.
5.

The actual amount of a good or a service consumers are willing to buy at some specific price is called:

a)
Demand curve
b)
Market price
c)
Quantity demanded
d)
Consumer surplus
6.

A graphical representation of the demand schedule that shows the relationship between the quantity demanded and price is called:

a)
Demand curve
b)
Market equilibrium line
c)
Price elasticity graph
d)
Supply curve
7.

This states that a higher price for a good or service, other things being equal, leads people to demand a smaller quantity of that good or service.

a)
Law of Supply
b)
Market Equilibrium
c)
Price Elasticity
d)
Law of Demand
8.

What is a shift of the demand curve?

a)

A shift of the demand curve is a change in the quantity demanded at any given price.

b)
A shift of the demand curve means that the quantity supplied has increased.
c)
A shift of the demand curve is caused solely by changes in consumer income.
d)
A shift of the demand curve indicates a decrease in the price of the good.
9.

A change in the quantity demanded of a good arising from a change in the good's price is represented as:

a)
Increase in demand
b)

Movement along the demand curve.

c)
Change in demand
d)
Shift in demand curve
10.

If a rise in the price of one good leads to an increase of demand for the another good, then we know that these two goods are:

a)
complements
b)
luxury goods
c)
inferior goods
d)
substitutes
11.

If a rise in the price of one good leads to a decrease in demand for another good, then we know that these two goods are:

a)
normal goods
b)
substitutes
c)
inferior goods
d)
complements
12.

A good that has an increased demand as incomes rise (In most cases) is called:

a)
Luxury good
b)
Giffen good
c)
Inferior good
d)
Normal good
13.

When peoples income increases and demand for a good decreases, then we know that good is:

a)

an inferior good

b)

a normal good

c)

a luxury good

d)

a substitute good

14.

What do we call a demand curve that is tailored to show the quantity demanded and price paid for one specific person?

a)
Individual demand curve
b)
Supply curve
c)
Aggregate demand curve
d)
Market demand curve
15.

The actual amount of a good or service that people are willing to sell at some specific price is:

a)

demand for

b)
equilibrium
c)

quantity supplied

d)
market price
16.

A supply schedule shows:

a)

How much of a good or service would be supplied at different prices.

b)
A summary of market trends over time.
c)
A list of suppliers and their locations.
d)
A graph of supply and demand curves.
17.

A graphic representation showing the relationship between quantity supplied and price is:

a)

a demand curve

b)

a price elasticity graph

c)

a supply curve

d)

a market equilibrium chart

18.

This is a change in the quantity supplied of a good or service at any given price:

a)

a shift in the supply curve

b)

a decrease in price

c)

an increase in supply

d)

a change in demand

19.

Movement along a supply curve is:

a)

A change in the quantity supplied of a good arising from a change in the good's price.

b)
An increase in production costs.
c)

A shift in the demand curve based on an increase in demand of the good's supplied value.

d)
A change in consumer preferences.