Microeconomics Terminologies Exam Questions and Answers Latest Update already Passed
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Course
Microeconomics
Institution
Microeconomics
Microeconomics Terminologies Exam Questions and Answers Latest Update already Passed
Economic Variable - Answers Something measurable that can have different values, such as the wages of software programmers
Positive Analysis - Answers analysis concerned with what is
Normative Analysis - Answer...
Microeconomics Terminologies Exam Questions and Answers Latest Update already Passed
Economic Variable - Answers Something measurable that can have different values, such as the wages of
software programmers
Positive Analysis - Answers analysis concerned with what is
Normative Analysis - Answers analysis concerned with what ought to be
Demand Schedule - Answers a table that shows the relationship between the price of a good and the
quantity demanded
Quantity Demanded - Answers the amount of a good or service that a consumer is willing and able to
purchase at a given price
Demand Curve - Answers a graph of the relationship between the price of a good and the quantity
demanded
Market Demand - Answers the demand by all consumers of a given good or service
Demographics - Answers the characteristics of a population with respect to age race, and gender
Quantity Supplied - Answers the amount of a good that sellers are willing and able to sell
Supply Curve - Answers a graph of the relationship between the price of a good and the quantity
supplied
Law of Supply - Answers Increases in price leads to an increase in quantity supplied, Decrease in price
causes decrease in quantity supplied
Technological Change - Answers a positive or negative change in the ability of a firm to produce a given
level of output with a given quantity of inputs
Surplus - Answers a situation in which the quantity supplied is greater than the quantity demanded
Shortage - Answers A situation in which the quantity demanded is greater than the quantity supplied
Price ceiling - Answers A legally determined maximum price that sellers may charge
Price floor - Answers A legally determined minimum price that sellers may recieve
Consumer Surplus - Answers The difference between the highest price a consumer is willing to pay for a
good or service and the price the consumer actually pays
Marginal Benefit - Answers The benefit to a consumer from consuming on more unit of a good or service
Marginal Cost - Answers The additional cost of producing one more unit of a good or service
, Producer surplus - Answers The difference between the lowest price a firm would be willing to accept
for a good or service and the price it actually receives
Economic Surplus - Answers The sum of consumer surplus and producer surplus
Deadweight Loss - Answers The reduction in economic surplus resulting from a market not being in
competitive equilibrium
Economic Efficiency - Answers A market outcome in which the marginal benefit to consumers of the last
unit produced is equal to it's marginal cost of production in which the sum of consumer surplus and
producer surplus is maximized
Tax incidence - Answers The actually division of the burden of a tax between buyers and sellers in a
market
Elasticity - Answers A measure of how much one economic variable responds to changes in another
economic variable.
Price elasticity of demand - Answers The responsiveness of the quantity demanded to a change in price,
measured by dividing the percentage change in the quantity demanded of a product by the percentage
change in the product's price
Elastic Demand - Answers the percentage change in quantity demanded is greater than the percentage
change in price
Inelastic Demand - Answers the percentage change in quantity demanded is less than the percentage
change in price.
Perfectly Inelastic demand - Answers the case where the quantity demanded is completely unresponsive
to price, and the price elasticity of demand equals zero.
Perfectly elastic demand - Answers the case where the quantity demanded is infinitely responsive to
price, and the price elasticity of demand equals infinity.
Total revenue - Answers the total amount of money a firm receives by selling goods or services
Cross-price elasticity of demand - Answers the percentage change in quantity demanded of one good
divided by the percentage change in the price of another good.
Utility - Answers The enjoyment or satisfaction people receive from consuming goods and services
Marginal Utility - Answers The change in total utility a person receives from consuming one additional
unit of a good or service
Law of diminishing marginal utility - Answers The principle that consumers experience diminishing
additional satisfaction as they consume more of a good or service during a given period of time
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