Download Unit 2 Fundamental Concept Review Guide

Unit 2 Review: Supply, Demand, Market Equilibrium
Name: ______________
Economics
Hr: __
Resource reminders:
- You are able to checkout a textbook overnight or access the textbook online. (chp 4 – 6)
- Unit 2 Quizlet review
- Guided notes (notes are posted on class website)
- Activities / assignments / review learning targets
Matching – DEMAND concepts (chp 4)
Normal good
Law of diminishing marginal utility
complements
Law of demand
Inferior good
Quantity demanded
market
Neutral good
substitute
1. A place where people come together to buy and sell goods or services is called a(n) ___________.
2. The _________________ states that as a person consumes additional units of a good, eventually the
utility gained from each additional unit of the good decreases.
3. Goods consumed jointly are ______________; this means that the price of one good and the demand
for the other good move in opposite directions.
4. The ________________ states that as the price of a good increases, the quantity demanded of the
good decreases, and as the price of a good decreases, the quantity demanded of the good increases.
5. A good for which demand rises as income rises and falls as income falls is referred to as a(n)
________________.
6. A(n) ________________ is a good for which demand falls as income rises and rises as income falls.
7. A good for which the demand remains unchanged as income rises or falls is called a(n)
______________.
8. Two goods are __________________ if the price of one good and the demand for the other move in
the same direction.
9. _____________________ refers to the number of units of a good purchased at a specific price.
Matching – SUPPLY concepts (chp 5)
technology
Law of supply
quota
Supply schedule
Quantity supplied
subsidy
1. A legal limit on the number of units of a foreign-produced good (or import) that can enter a
country is a(n) ___________________.
2. The __________________ states that as the price of a good increases, the quantity supplied of
the good increases, and as the price of a good decreases, the quantity supplied of the good decreases.
3. The ability to produce more output with a fixed amount of resources is called an advancement
in ___________________.
4. A(n) _______________ is a financial payment made by the government for certain actions.
5. The number of units of a good produced and offered for sale at a specific price is
____________________.
6. A(n) _____________________ is a numerical chart illustrating the law of supply.
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Unit 2 Review: Supply, Demand, Market Equilibrium
Economics
Matching – MARKET EQUILIBRIUM concepts (chp 6)
surplus
inventory
Name: ______________
Hr: __
equilibrium
shortage
1. ________________ in a market exists when the quantity of a good that buyers are willing and able to buy
is equal to the quantity of the good that sellers are willing and able to produce and offer for sale (quantity
demanded = quantity supplied).
2. The condition in which quantity supplied of a good is greater than quantity demanded is called a(n)
______________.
3. The stock of goods that a business or store has on hand is its ___________________.
4. The condition in which quantity demanded of a good is greater than quantity supplied is a(n)
______________.
Short Answer
1. What is the law of demand?
2. What are the demand shifters?
3. What is quantity demanded?
2. What is the law of supply?
3. What are the supply shifters?
4. What is quantity supplied?
5. How are increase and decreases in demand/supply represented on a graph? Graph a visual.
6. How are changes in quantity demanded/supplied represented on a graph? Graph a visual.
Complete Unit 2 Quizlet Review (posted at class website)
http://redmanihs.weebly.com/unit-2-principles-of-supply-and-demand.html
Recommended sequence - “Flashcards”, “Scatter”, then click on the “Test” button from the top menu. Repeat
these steps. Take note of areas of success and struggles. How will your results help guide your studies for the test?
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