EC-012
What term is another name for the equilibrium price?
Market Clearing Price
what is a correct statement regarding law of demand?
The quantity people will buy varies with price.
What is the four economic activities?
Consumption, production, exchange, and distribution
Which term is another name for economic resources?
Factors of production
What best describes consumer goods and services?
Purchased and actually used by the ultimate consumer
Which situation exists when demand is greater than supply?
Excess Demand
What condition describes sellers market?
Large demand, small demand, high price.
What condition results from the gap between limited resources and unlimited wants for goods and services?
Scarcity
What is an example of a capital good?
Machines
What is not a reason a producer would buy industrial goods and services?
For the buyers own personal final use?
A pair that matches demand price and supply price?
Demand price is the maximum buyers will pay, supply price is the maximum sellers will accept
At which point is the quantity supplied equal to the quantity demanded
Equilibrium
You spend a saturday working a shift instead of going out to a concert. What is the lost benefit called?
Trade Off
A company orders parts so they arrive exactly when needed instead of keeping a large supply at hand. What is this method called?
Just in Time Inventory
What is a classification of consumer products
Specialty products, utility products, etc
The price of beef rises sharply, so many shoppers buy chicken instead. What is this called?
Substitution Effect
An example of a pair of complementary goods
goods that go hand in hand
What is the differences between goods and services
Goods are tangible objects, while services are intangible activities
Which group of people was born between 1981 and 1995
Generation Y
Classifications of industrial products
Materials, parts, installations, equipment, and supplies
What is a price ceiling?
A maximum legal price that businesses can charge for certain products
Demand for a product drops sharply when its price rises slightly. What type of demand is this?
Elastic Demand
What is an economic want rather then a noneconomic want?
One involves a financial trade off while the other doesn't
What is a nonrenewable resource
Fossil fuels
A furniture manufacturer buys lumber to build tables it will sell to customers. How is the lumber classified?
Industrial product, because it is bought by a producer to make other goods