Economics Quarter 1 Practice - Honors

Fill-in-the-blank practice review flashcards covering foundational principles, terminology, and concepts from Honors Economics Quarter 1.

The basic problem with economics is __________.

scarcity

Scarcity can be defined as __________ wants and limited resources.

unlimited

The point at which the supply and demand curves intersect is __________.

equilibrium

The law stating an inverse relationship between price and quantity demanded ($P \uparrow Q_d \downarrow$) is the law of __________.

demand

The law stating that price and quantity supplied move in the same direction ($P \uparrow Q_s \uparrow$) is the law of __________.

supply

Among land, labor, and money, __________ is NOT considered a resource of production.

money

The function of a rationing device is to decide __________.

who gets what

Hot dogs and hot dog buns are an example of __________ goods.

complements

In economic categorization, "consumer" and "buyer" serve as examples of __________.

substitutes

A known reason for a change in demand is personal __________.

taste

The law stating that the more we buy of one item, the less utility we receive is the law of __________.

diminishing returns

Maximum utilization of the resources of production can be defined as __________.

efficiency

The body of knowledge used to meet desired goals of production is known as __________.

technology

In a "command economy," the entity that does the rationing is the __________.

government

The principle that explains why some construction workers get paid more for the same job is __________.

supply and demand

Decisions at the margin are made with __________ in mind.

additional benefit

The term that describes the value of the alternative you gave up to make a choice is __________.

opportunity cost

A good whose relationship between income and demand is represented by the formula $I \uparrow D \uparrow$ is a(n) __________ good.

normal

The rationing device in a "market economy" is __________.

price

Adding air conditioning onto a new car would be an example of a decision at the __________.

margin

Being forced to buy furniture together with an apartment is an example of a(n) __________.

tie-in trade

"Amusement parks are bad for the national economy," is a statement from a study in __________.

macroeconomics

A good whose relationship between income and demand is represented by the formula $I \uparrow D \downarrow$ is a(n) __________ good.

inferior

A market condition where $Q_s > Q_d$ will result in a(n) __________.

surplus

Being satisfied with a decision is an indication of your opportunity cost being __________.

low

A market condition where $Q_s = Q_d$ will result in __________.

equilibrium

The stock of goods a store has on hand is called __________.

inventory

Income adjusted for price changes is called __________ income.

real

That portion of the change in $Q_d$ attributable to a change in relative price is the __________ effect.

substitution

That portion of the change in $Q_d$ attributable to a change in real income is the __________ effect.

income

Price multiplied by the number of units sold equals total __________.

revenue

A good whose benefits cannot be denied to anyone is classified as a(n) __________ good.

public

In economic terms, satisfaction is known as __________.

utility

Comparing the satisfaction one person receives from a good with another person's satisfaction is an __________ comparison.

interpersonal utility

An artificial construct used to measure satisfaction is called a(n) __________.

util

The observation that those things with the greatest value in use sometimes have little value in exchange is the __________ paradox.

diamond-water

The Latin phrase meaning "all things holding equal" is __________.

ceteris paribus

An increase in the value of currency is known as __________.

appreciation

The value of all assets owned, both monetary and nonmonetary, is referred to as __________.

wealth

A change in purchasing power resulting from a change in price level is known as the real __________ effect.

balance