FREE ECONOMICS AND STUDY GAMES ABOUT ECON

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FREE ECONOMICS AND STUDY GAMES ABOUT ECON

CHAPTER 4 VOCAB EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -21 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Change in Quantity Demanded

Answer:

movement along the demand curve showing that the amount someone is willing to purchase changes when the price changes

Question 2: Inelastic

Answer:

type of elasticity where a change in price causes a relatively smaller change in quantity demanded

Question 3: Demand

Answer:

Combination of desire, ability, and willingness to buy a product

Question 4: Diminishing Marginal Utility

Answer:

decrease in satisfaction or usefulness from having one more unit of the same product

Question 5: Market Economy

Answer:

economic system in which ppl and firms make all economic decisions

Question 6: Demand Curve

Answer:

a curve that shows the quantities demanded at all possible prices

Question 7: Marginal Utility

Answer:

additional satisfaction or usefulness a consumer gets from having one or more units of a product

Question 8: Substitution Effect

Answer:

that part of a change in quantity demanded due to a price change that makes other products more or less costly

Question 9: Change in Demand

Answer:

shift of the demand curve when ppl buy different amounts at every price

Question 10: Total Expenditures

Answer:

amount that consumers spend on a product at a particular price

Question 11: Law of Demand

Answer:

rule stating that consumers will buy more of a product at lower prices and less at higher prices

Question 12: Income Effect

Answer:

that part of a change in quantity demanded due to a change in the buyer's real income when a price changes

Question 13: Demand Schedule

Answer:

a table that lists how much of a product consumers will buy at all possible prices

Question 14: Unit Elastic

Answer:

type of elasticity where a change in price causes a proportional change in quantity demanded

Question 15: Elasticity

Answer:

a measure of responsiveness that shows how one variable responds to a change in another variable

Question 16: Demand Elasticity

Answer:

a measure that shows how a change in quantity demanded responds to a change in price

Question 17: Elastic

Answer:

type of elasticity where a change in price causes a relatively larger change in quantity demanded

Question 18: Market Demand Curve

Answer:

a curve that shows how much of a product all consumers will buy at all possible prices

Question 19: Substitutes

Answer:

competing items that can be used in place of one another

Question 20: Microeconomics

Answer:

part of economics dealing with behavior and decision making by individual units, such as ppl and firms

Question 21: Complements

Answer:

products that increase the use of other products