Download Sections 1 & 2 - Vocab Review

Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. market economy; 2. capital; 3. scarce; 4 opportunity cost;
_____manufactured goods used to make other goods and services.
_____an economy in which decisions of individual producers and
consumers largely determine what, how and for whom to produce, with
little government involvement in the decisions.
_____the real cost of an item: what you must give up in order to get it.
_____in short supply; a resource is scarce when there is not enough of
the resource available to satisfy all the various ways a society wants to
use it
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. market economy; 2. capital; 3. scarce; 4 opportunity cost;
__2__manufactured goods used to make other goods and services.
__1__an economy in which decisions of individual producers and
consumers largely determine what, how and for whom to produce, with
little government involvement in the decisions.
__4__the real cost of an item: what you must give up in order to get it.
__3__in short supply; a resource is scarce when there is not enough of
the resource available to satisfy all the various ways a society wants to
use it
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. microeconomics; 2. macroeconomics; 3. positive economics; 4.
normative economics;
_____the branch of economic analysis that makes prescriptions about
the way the economy should work.
_____the branch of economic analysis that describes the way the
economy actually works.
_____the branch of economics that is concerned with the overall ups and
downs in the economy.
_____the branch of economics that studies how people make decisions
and how those decisions interact.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. microeconomics; 2. macroeconomics; 3. positive economics; 4.
normative economics;
__4__the branch of economic analysis that makes prescriptions about
the way the economy should work.
__3__the branch of economic analysis that describes the way the
economy actually works.
__2__the branch of economics that is concerned with the overall ups and
downs in the economy.
__1__the branch of economics that studies how people make decisions
and how those decisions interact.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. business cycle; 2. depression; 3. recessions; 4. unemployment;
_____the short-run alternation between economic downturns, known as
recessions, and economic upturns, known as expansions.
_____a very deep and prolonged downturn.
_____a period of economic downturn when output and unemployment
are falling; also referred to as a contraction.
_____the total number of people who are actively looking for work but
aren’t currently employed.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. business cycle; 2. depression; 3. recessions; 4. unemployment;
__1__the short-run alternation between economic downturns, known as
recessions, and economic upturns, known as expansions.
__2__a very deep and prolonged downturn.
__3__a period of economic downturn when output and unemployment
are falling; also referred to as a contraction.
__4__the total number of people who are actively looking for work but
aren’t currently employed.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. labor force; 2. unemployment rate; 3. output; 4. inflation;
_____the amount of goods and services produced.
_____the number of people who are either actively employed for pay or
unemployed and actively looking for work; the sum of employment and
unemployment.
_____a rise in the overall price level.
_____the percentage of the total number of people in the labor force who
are unemployed, calculated as unemployment/(unemployment +
employment).
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. labor force; 2. unemployment rate; 3. output; 4. inflation;
__3__the amount of goods and services produced.
__1___the number of people who are either actively employed for pay or
unemployed and actively looking for work; the sum of employment and
unemployment.
__4__a rise in the overall price level.
__2__the percentage of the total number of people in the labor force who
are unemployed, calculated as unemployment/(unemployment +
employment).
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. economic growth; 2. trade-off; 3. production possibilities curve; 4.
gains from trade;
_____an increase in the maximum amount of goods and services an
economy can produce.
_____An economic principle that states that by dividing tasks and trading,
people can get more of what they want through trade than they could if
they tried to be self-sufficient.
_____when you give up something in order to have something else.
_____shows the maximum quantity of one good that can be produced for
each possible quantity of the other good produced. It illustrates the tradeoffs facing an economy that produces only two goods.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. economic growth; 2. trade-off; 3. production possibilities curve; 4.
gains from trade;
__1__an increase in the maximum amount of goods and services an
economy can produce.
__4__An economic principle that states that by dividing tasks and trading,
people can get more of what they want through trade than they could if
they tried to be self-sufficient.
__2__when you give up something in order to have something else.
__3__shows the maximum quantity of one good that can be produced for
each possible quantity of the other good produced. It illustrates the tradeoffs facing an economy that produces only two goods.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. demand curve; 2. change in demand; 3. movement along the
demand curve; 4. substitutes;
_____pairs of goods for which a rise in the price of one of the goods
leads to an increase in the demand for the other good.
_____a change in the quantity demanded of a good that results from a
change in the price of that good.
_____a shift of the demand curve, which changes the quantity demanded
at any given price.
_____a graphical representation of the demand schedule, showing the
relationship between quantity demanded and price.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. demand curve; 2. change in demand; 3. movement along the
demand curve; 4. substitutes;
__4__pairs of goods for which a rise in the price of one of the goods
leads to an increase in the demand for the other good.
__3__a change in the quantity demanded of a good that results from a
change in the price of that good.
__2__a shift of the demand curve, which changes the quantity demanded
at any given price.
__1__a graphical representation of the demand schedule, showing the
relationship between quantity demanded and price.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. complements; 2. normal good; 3. inferior good; 4. supply curve;
_____a good for which a rise in income decreases the demand for the
good.
_____a graphical representation of the supply schedule, showing the
relationship between quantity supplied and price.
_____pairs of goods for which a rise in the price of one good leads to a
decrease in the demand for the other good.
_____a good for which a rise in income increases the demand for that
good—the “normal” case.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. complements; 2. normal good; 3. inferior good; 4. supply curve;
__3__a good for which a rise in income decreases the demand for the
good.
__4__a graphical representation of the supply schedule, showing the
relationship between quantity supplied and price.
__1__pairs of goods for which a rise in the price of one good leads to a
decrease in the demand for the other good.
__2__a good for which a rise in income increases the demand for that
good—the “normal” case.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. change in supply; 2. movements along the supply curve; 3. input; 4.
equilibrium;
_____a shift of the supply curve, which changes the quantity supplied at
any given price.
_____a change in the quantity supplied of a good that results from a
change in the price of that good.
_____a good or service used to produce another good or service.
_____an economic situation in which no individual would be better off
doing something different.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. change in supply; 2. movements along the supply curve; 3. input; 4.
equilibrium;
__1__a shift of the supply curve, which changes the quantity supplied at
any given price.
__2__a change in the quantity supplied of a good that results from a
change in the price of that good.
__3__a good or service used to produce another good or service.
__4__an economic situation in which no individual would be better off
doing something different.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. equilibrium price; 2. equilibrium quantity; 3. surplus; 4. shortage;
_____the price at which the market is in equilibrium, that is, the quantity
of a good or service demanded equals the quantity of that good or
service supplied; also referred to as the market-clearing price.
_____the quantity of a good or service bought and sold at the equilibrium
(or market-clearing) price.
_____the excess of a good or service that occurs when the quantity
supplied exceeds the quantity demanded; surpluses occur when the
price is above the equilibrium price.
_____the insufficiency of a good or service that occurs when the quantity
demanded exceeds the quantity supplied; shortages occur when the
price is below the equilibrium price.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. equilibrium price; 2. equilibrium quantity; 3. surplus; 4. shortage;
__1__the price at which the market is in equilibrium, that is, the quantity
of a good or service demanded equals the quantity of that good or
service supplied; also referred to as the market-clearing price.
__2__the quantity of a good or service bought and sold at the equilibrium
(or market-clearing) price.
__3__the excess of a good or service that occurs when the quantity
supplied exceeds the quantity demanded; surpluses occur when the
price is above the equilibrium price.
__4__the insufficiency of a good or service that occurs when the quantity
demanded exceeds the quantity supplied; shortages occur when the
price is below the equilibrium price.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. deadweight loss; 2. inefficient allocation to consumers; 3. price
floor; 4. price ceilings;
_____losses associated with quantities of output that are greater than or
less than the efficient level, as can result from market intervention such
as taxes, or from externalities such as pollution.
_____the maximum price sellers are allowed to charge for a good or
service; a form of price control.
_____a form of inefficiency in which sellers who would be willing to sell a
good at the lowest price are not always those who actually manage to
sell it; often the result of a price floor.
_____the minimum price buyers are required to pay for a good or service;
a form of price control.
Mr.
Weiss
Test 1 – Sections 1 & 2 – Vocabulary Review
1. deadweight loss; 2. inefficient allocation to consumers; 3. price
floor; 4. price ceilings;
__1__losses associated with quantities of output that are greater than or
less than the efficient level, as can result from market intervention such
as taxes, or from externalities such as pollution.
__4__the maximum price sellers are allowed to charge for a good or
service; a form of price control.
__2__a form of inefficiency in which sellers who would be willing to sell a
good at the lowest price are not always those who actually manage to
sell it; often the result of a price floor.
__3__the minimum price buyers are required to pay for a good or service;
a form of price control.