Download Test 2 - Sections 9 & 10 - Vocab Review

Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. substitution effect; 2. price elasticity of demand; 3. perfectly
inelastic demand; 4. perfectly elastic demand;
_____the case in which any price increase will cause the quantity demanded to
drop to zero; the demand curve is a horizontal line.
_____the case in which the quantity demanded does not respond at all to changes
in the price; the demand curve is a vertical line.
_____the ratio of the percent change in the quantity demanded to the percent
change in the price as we move along the demand curve (dropping the minus sign).
_____the change in the quantity of a good demanded as the consumer substitutes
the good that has become relatively cheaper for the good that has become relatively
more expensive.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. substitution effect; 2. price elasticity of demand; 3. perfectly
inelastic demand; 4. perfectly elastic demand;
__4__the case in which any price increase will cause the quantity demanded to
drop to zero; the demand curve is a horizontal line.
__3__the case in which the quantity demanded does not respond at all to changes
in the price; the demand curve is a vertical line.
__2__the ratio of the percent change in the quantity demanded to the percent
change in the price as we move along the demand curve (dropping the minus sign).
__1__the change in the quantity of a good demanded as the consumer substitutes
the good that has become relatively cheaper for the good that has become relatively
more expensive.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. elastic demand; 2. inelastic demand; 3. unit-elastic demand;
4. total revenue;
_____the price elasticity of demand is greater than 1.
_____the total value of sales of a good or service (the price of the
good or service multiplied by the quantity sold).
_____when the price elasticity of demand is less than 1.
_____the price elasticity of demand is exactly 1
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. elastic demand; 2. inelastic demand; 3. unit-elastic demand;
4. total revenue;
__1__the price elasticity of demand is greater than 1.
__4__the total value of sales of a good or service (the price of the
good or service multiplied by the quantity sold).
__2__when the price elasticity of demand is less than 1.
__3__the price elasticity of demand is exactly 1
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. consumer surplus; 2. total producer surplus; 3. producer surplus;
4. progressive tax;
_____a term often used to refer both to individual consumer surplus
and to total consumer surplus.
_____the sum of the individual producer surpluses of all the sellers
of a good in a market.
_____a term often used to refer to either individual producer surplus
or to total producer surplus.
_____a tax that takes a larger share of the income of high-income
taxpayers than of low-income taxpayers.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. consumer surplus; 2. total producer surplus; 3. producer surplus;
4. progressive tax;
__1__a term often used to refer both to individual consumer surplus
and to total consumer surplus.
__2__the sum of the individual producer surpluses of all the sellers
of a good in a market.
__3__a term often used to refer to either individual producer surplus
or to total producer surplus.
__4__a tax that takes a larger share of the income of high-income
taxpayers than of low-income taxpayers.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. regressive tax; 2. proportional tax; 3. excise tax; 4. tax incidence;
_____a tax on sales of a particular good or service.
_____a tax that takes a smaller share of the income of high-income
taxpayers than of low-income taxpayers.
_____the distribution of the tax burden.
_____a tax that is the same percentage of the tax base regardless of
the taxpayer’s income or wealth.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. regressive tax; 2. proportional tax; 3. excise tax; 4. tax incidence;
__3__a tax on sales of a particular good or service.
__1__a tax that takes a smaller share of the income of high-income
taxpayers than of low-income taxpayers.
__4__the distribution of the tax burden.
__2__a tax that is the same percentage of the tax base regardless of
the taxpayer’s income or wealth.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. utility; 2. marginal utility; 3. principle of diminishing marginal
utility; 4. budget constraint;
_____the proposition that each successive unit of a good or service
consumed adds less to total utility than does the previous unit.
_____ measure of the satisfaction derived from consumption of
goods and services.
_____the cost of a consumer’s consumption bundle cannot exceed
the consumer’s income.
_____the change in total utility generated by consuming one
additional unit of a good or service.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. utility; 2. marginal utility; 3. principle of diminishing marginal
utility; 4. budget constraint;
__3__the proposition that each successive unit of a good or service
consumed adds less to total utility than does the previous unit.
__1__ measure of the satisfaction derived from consumption of
goods and services.
__4__the cost of a consumer’s consumption bundle cannot exceed
the consumer’s income.
__2__the change in total utility generated by consuming one
additional unit of a good or service.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. economic profit; 2. marginal cost curve; 3. fixed input; 4. variable
input;
_____a business’s revenue minus the opportunity cost of resources;
usually less than the accounting profit.
_____a graphical representation showing how the cost of producing
one more unit depends on the quantity that has already been produced.
_____an input whose quantity is set for a period of time and cannot be
varied (for example, land).
_____an input whose quantity the firm can change at any time (for
example, labor).
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. economic profit; 2. marginal cost curve; 3. fixed input; 4. variable
input;
__1__a business’s revenue minus the opportunity cost of resources;
usually less than the accounting profit.
__2__a graphical representation showing how the cost of producing
one more unit depends on the quantity that has already been produced.
__3__an input whose quantity is set for a period of time and cannot be
varied (for example, land).
__4__an input whose quantity the firm can change at any time (for
example, labor).
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. total product curve; 2. marginal product; 3. diminishing returns
to an input; 4. fixed cost;
_____cost that does not depend on the quantity of output produced.
_____the effect observed when an increase in the quantity of an input,
while holding the levels of all other inputs fixed, leads to a decline in the
marginal product of that input.
_____the additional quantity of output produced by using one more unit of
that input.
_____a graphical representation of the production function, showing how
the quantity of output depends on the quantity of the variable input for a
given quantity of the fixed input.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. total product curve; 2. marginal product; 3. diminishing returns
to an input; 4. fixed cost;
__4__cost that does not depend on the quantity of output produced.
__3__the effect observed when an increase in the quantity of an input,
while holding the levels of all other inputs fixed, leads to a decline in the
marginal product of that input.
__2__the additional quantity of output produced by using one more unit of
that input.
__1__a graphical representation of the production function, showing how
the quantity of output depends on the quantity of the variable input for a
given quantity of the fixed input.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. variable cost; 2. total cost; 3. average fixed cost; 4. average
variable cost;
_____the variable cost per unit of output.
_____a cost that depends on the quantity of output produced; the
cost of the input that changes.
_____the sum of the fixed cost and the variable cost of producing a
quantity of output.
_____the fixed cost per unit of output.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. variable cost; 2. total cost; 3. average fixed cost; 4. average
variable cost;
__4__the variable cost per unit of output.
__1__a cost that depends on the quantity of output produced; the
cost of the input that changes.
__2__the sum of the fixed cost and the variable cost of producing a
quantity of output.
__3__the fixed cost per unit of output.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. long-run average total cost curve; 2. economies of scale;
3. diseconomies of scale; 4. sunk cost;
_____ a cost that has already been incurred and is nonrecoverable.
_____a graphical representation showing the relationship between
output and average total cost when fixed cost has been chosen to
minimize average total cost for each level of output.
_____long-run average total cost increases as output increases.
_____long-run average total cost declines as output increases.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. long-run average total cost curve; 2. economies of scale;
3. diseconomies of scale; 4. sunk cost;
__4__ a cost that has already been incurred and is nonrecoverable.
__1__a graphical representation showing the relationship between
output and average total cost when fixed cost has been chosen to
minimize average total cost for each level of output.
__3__long-run average total cost increases as output increases.
__2__long-run average total cost declines as output increases.
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. monopolistic competition; 2. perfectly competitive market;
3. monopoly; 4. oligopoly;
_____a market in which all market participants are price-takers.
_____an industry with only a small number of producers.
_____a market structure in which there are many competing firms in
an industry, each firm sells a differentiated product, and there is free
entry into and exit from the industry in the long run.
_____an industry controlled by one firm
Mr.
Weiss
Test 2 – Sections 9 & 10 – Vocabulary Review
1. monopolistic competition; 2. perfectly competitive market;
3. monopoly; 4. oligopoly;
__2__a market in which all market participants are price-takers.
__4__an industry with only a small number of producers.
__1__a market structure in which there are many competing firms in
an industry, each firm sells a differentiated product, and there is free
entry into and exit from the industry in the long run.
__3__an industry controlled by one firm