REVIEW FOR TEST UNIT 1: SUPPLY AND DEMAND

Written questions

1. the total demand of all consumers for a product or service

Market demand
2. a situation in which quantity supplied is greater than quantity
demanded

Surplus

3. the amount of a product that producers are willing and able to offer
at different prices a competing product that consumers can use in
place of another.

Supply
4. decreasing satisfaction or usefulness as additional units of a product
are acquired

Diminishing Marginal Utility

5. measure of responsiveness relating change in quantity demanded to
change in price
Demand Elasticity
6. The price that balances quantity supplied and quantity demanded
Equilibrium price
7. the concept that people are normally willing to buy less of a product
if the price is high and more of a product if the price is low
Law of demand
8. a competing product that consumers can use in place of another
Substitute good
9. table showing quantities supplied to a change in price
Supply schedule
Matching questions

1.  demand elasticity
2.  supply schedule
3.  complement
4.  demand curve
5.  demand schedule

A table showing quantities supplied to a change in price

B product often used with another product

c table showing quantities demanded at different possible prices

D measure of responsiveness relating change in quantity demanded

to change in price

E downward sloping line that graphically shows the quantities

demanded at each possible price

Multiple choice questions

1.Upward-sloping line that graphically shows the quantities supplied at
each possible price

a) Supply curve
b) supply schedule
c) demand curve
d) Supply
2. the degree to which resources are being used efficiently to produce
goods and services
a) utility
b) productivity
c) subsidy  
d) profit
3. the total of the supply schedules of businesses that provide the same
good or service
 a) market demand
b) law of supply
c) market supply
d) Supply

4. the amount of money left over after expenses are taken out

a) demand
b) profit  
c) utility  
d) Supply

True/False questions
1. Shortage is a situation in which quantity supplied is greater than
quantity demanded

True        False

2. law of supply is the total of the supply schedules of businesses that

provide the same good or service

True        False

3. The law of demand is the total demand of all consumers for a product or

service

True        False

4. A subsidy is the amount of a product that producers are willing and able

to offer at different prices

True        False

5. The demand is the amount of a product consumers are willing and able to
buy at different prices

True        False

6. Productivity is the degree to which resources are being used efficiently to

produce goods and services
True        False
7. Taxes are a government payment that supports a business or market
True        False