EC-012
What term is another name for equilibrium price
Market clearing price
WHat is a correct statment 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 resource?
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 then supply
Excess demand
What condition describes sellers market
large demand, small supply, high price
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 maimum sellers will accept
At which point is the quantity supplied equal to the quantity demanded
Equililibrium
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 complemtary goods
goods that go hand in hand
What is the differnce 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
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