Vocabulary
Economic Variables
Demand
Goods and Services
Ups and Downs
100
The quantity of goods and services a person can buy with a given amount of money.
What is Buying Power
100
When consumers have many other possible choices for goods and services. When the price increases for these goods and services people tend to choose other goods and services.
What are Substitute Goods
100
• The price for Product A falls. • Prices for Product B and Product C fall immediately afterward. The information above suggests that markets for Products A, B and C are A. inefficient B. regulated C. restricted D. interrelated
What is interrrelated
100
Demand for a product tends to be price-inelastic when the product has A. few if any substitutes B. substantial market value C. more consumers than suppliers D. fixed instead of flexible prices
What is few if any substitutes
100
Where people value some of the uses of their products more than others.
What is Diminishing Personal Value
200
An inverse relationship between the quantity demanded and the price of a product.
What is Law of Demand
200
If the price of cars falls and consumers buy more of them, the demand for gasoline is likely to increase. What do we call this relationship between cars and gasoline?
What is Complimentary Goods
200
If consumers readily switch to substitutes when the price of butter increases by only a small amount, the demand for butter is said to be A. static B. elastic C. inelastic D. market-driven
What is Elastic
200
In economics, the term demand refers to the quantity of a good that people A. would like to consume on a given date B. will buy at a particular price on a given date C. will buy at different prices during a given time period D. would like to have available during a given time period
What is will buy at different prices during a given time period
200
Which of the following items is likely to have the most inelastic demand? A. Coca Cola B. A loaf of Bread C. Salt D. Shampoo
What is Salt
300
Quantities of a particular good or service consumers are willing and able to buy at different prices at a particular time.
What is Demand
300
As more people become comfortable with technology, the number of personal computers and cellular phones increases to meet the new demand. An increase in the number of buyers in a market will cause a demand line to increase or shift to the right. What variable is changing demand in this situation?
What is Population
300
Demand for insulin tends to be price-inelastic because the drug is considered A. a necessity B. a substitute C. a good value D. a useful item
What is a necessity
300
Which of the following is likely to increase the demand for peanut butter? A. Fewer children in the population B. News that insects have destroyed much of the peanut crop. C. A big increase in the price of jelly. D. A report from the Surgeon General of the United States that eating peanut butter makes people nutty.
What is News that insects have destroyed much of the peanut crop.
300
The consumption of Coca Cola goes way up during the warmer months of the year. What variable is effecting demand?
What is Weather or Seasons
400
D. A measure of the impact of price effect.
What is Price Elasticity of Demand
400
It's possible that big-soled shoes and baggy clothes will disappear, only to return at a later time. if shoes and clothing styles disappear, the demand for them will decrease or shift to the left. What variable is effecting demand?
What is Styles, Tastes, and Habits
400
The demand curve shows an inverse, or negative, relationship between A. elastic or inelastic prices B. price and quantity supplied C. short-run and long-run prices D. price and quantity demanded
What is price and quantity demanded
400
If the price of water increases, A. the demand for desert-type landscaping will shift to the left. B. the demand for water will shift to the left. C. the demand for water-saving shower heads will shift to the right. D. the demand for bath soap will shift to the right.
What is the demand for water-saving shower heads will shift to the right.
400
What role do prices play in a market economy?
What is information to buyers and sellers
500
The point reached when an additional unit of a product consumed is less satisfying than the one before.
What is Diminishing Marginal Utility
500
Consumers sometimes predict that the price or availability of a product is likely to change in the future. For example, if people suddenly expect home computers to be priced higher in the near future, they will probably buy more computers today. In such a situation the demand for home computers would increase. What economic variable is effecting demand?
What is Change in Expectations
500
An economist would probably state that in a market economy, prices are generally determined by the interaction between A. buyers and sellers B. wholesalers and retailers C. producers and labor unions D. consumers and government officials
What is buyers and sellers
500
The total of all individual demands in a given market at a particular time.
What is market Demand
500
Price elasticity is a measure of the impact of _______________________________________________
What is the price effect
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