Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. market economy; 2. capital; 3. scarce; 4 opportunity cost;1. market economy; 2. capital; 3. scarce; 4 opportunity cost;

_____manufactured goods used to make other goods and services._____manufactured goods used to make other goods and services.

_____an economy in which decisions of individual producers and _____an economy in which decisions of individual producers and consumers largely determine what, how and for whom to produce, with consumers largely determine what, how and for whom to produce, with little government involvement in the decisions.little government involvement in the decisions.

_____the real cost of an item: what you must give up in order to get it._____the real cost of an item: what you must give up in order to get it.

_____in short supply; a _____in short supply; a resourceresource is scarce when there is not enough of is scarce when there is not enough of the resource available to satisfy all the various ways a society wants to the resource available to satisfy all the various ways a society wants to use ituse it

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. market economy; 2. capital; 3. scarce; 4 opportunity cost;1. market economy; 2. capital; 3. scarce; 4 opportunity cost;

____22__manufactured goods used to make other goods and services.__manufactured goods used to make other goods and services.

____11__an economy in which decisions of individual producers and __an economy in which decisions of individual producers and consumers largely determine what, how and for whom to produce, with consumers largely determine what, how and for whom to produce, with little government involvement in the decisions.little government involvement in the decisions.

____44__the real cost of an item: what you must give up in order to get it.__the real cost of an item: what you must give up in order to get it.

____33__in short supply; a __in short supply; a resourceresource is scarce when there is not enough of is scarce when there is not enough of the resource available to satisfy all the various ways a society wants to the resource available to satisfy all the various ways a society wants to use ituse it

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. microeconomics; 2. macroeconomics; 3. positive economics; 4. 1. microeconomics; 2. macroeconomics; 3. positive economics; 4. normative economics; normative economics;

_____the branch of economic analysis that makes prescriptions about _____the branch of economic analysis that makes prescriptions about the way the the way the economyeconomy should work. should work.

_____the branch of economic analysis that describes the way the _____the branch of economic analysis that describes the way the economyeconomy actually works. actually works.

_____the branch of _____the branch of economicseconomics that is concerned with the overall ups and that is concerned with the overall ups and downs in the downs in the economyeconomy. .

_____the branch of _____the branch of economicseconomics that studies how people make decisions that studies how people make decisions and how those decisions interact.and how those decisions interact.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. microeconomics; 2. macroeconomics; 3. positive economics; 4. 1. microeconomics; 2. macroeconomics; 3. positive economics; 4. normative economics; normative economics;

____44__the branch of economic analysis that makes prescriptions about __the branch of economic analysis that makes prescriptions about the way the the way the economyeconomy should work. should work.

____33__the branch of economic analysis that describes the way the __the branch of economic analysis that describes the way the economyeconomy actually works. actually works.

____22__the branch of __the branch of economicseconomics that is concerned with the overall ups and that is concerned with the overall ups and downs in the downs in the economyeconomy. .

____11__the branch of __the branch of economicseconomics that studies how people make decisions that studies how people make decisions and how those decisions interact.and how those decisions interact.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. business cycle; 2. depression; 3. recessions; 4. unemployment;1. business cycle; 2. depression; 3. recessions; 4. unemployment;

_____the short-run alternation between economic downturns, known as _____the short-run alternation between economic downturns, known as recessionsrecessions, and economic upturns, known as , and economic upturns, known as expansionsexpansions. .

_____a very deep and prolonged downturn. _____a very deep and prolonged downturn.

_____a period of economic downturn when output and unemployment _____a period of economic downturn when output and unemployment are falling; also referred to as a contraction. are falling; also referred to as a contraction.

_____the total number of people who are actively looking for work but _____the total number of people who are actively looking for work but aren’t currently employed.aren’t currently employed.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. business cycle; 2. depression; 3. recessions; 4. unemployment;1. business cycle; 2. depression; 3. recessions; 4. unemployment;

____11__the short-run alternation between economic downturns, known as __the short-run alternation between economic downturns, known as recessionsrecessions, and economic upturns, known as , and economic upturns, known as expansionsexpansions. .

____22__a very deep and prolonged downturn. __a very deep and prolonged downturn.

____33__a period of economic downturn when output and unemployment __a period of economic downturn when output and unemployment are falling; also referred to as a contraction. are falling; also referred to as a contraction.

____44__the total number of people who are actively looking for work but __the total number of people who are actively looking for work but aren’t currently employed.aren’t currently employed.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. labor force; 2. unemployment rate; 3. output; 4. inflation;1. labor force; 2. unemployment rate; 3. output; 4. inflation;

_____the amount of goods and services produced. _____the amount of goods and services produced.

_____the number of people who are either actively employed for pay or _____the number of people who are either actively employed for pay or unemployed and actively looking for work; the sum of unemployed and actively looking for work; the sum of employmentemployment and and unemploymentunemployment..

_____a rise in the overall price level. _____a rise in the overall price level.

_____the percentage of the total number of people in the _____the percentage of the total number of people in the labor forcelabor force who who are unemployed, calculated as are unemployed, calculated as unemploymentunemployment/(/(unemploymentunemployment + + employmentemployment). ).

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. labor force; 2. unemployment rate; 3. output; 4. inflation;1. labor force; 2. unemployment rate; 3. output; 4. inflation;

____33__the amount of goods and services produced. __the amount of goods and services produced.

____11___the number of people who are either actively employed for pay or ___the number of people who are either actively employed for pay or unemployed and actively looking for work; the sum of unemployed and actively looking for work; the sum of employmentemployment and and unemploymentunemployment..

____44__a rise in the overall price level. __a rise in the overall price level.

____22__the percentage of the total number of people in the __the percentage of the total number of people in the labor forcelabor force who who are unemployed, calculated as are unemployed, calculated as unemploymentunemployment/(/(unemploymentunemployment + + employmentemployment). ).

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. economic growth; 2. trade-off; 3. production possibilities curve; 4. 1. economic growth; 2. trade-off; 3. production possibilities curve; 4. gains from trade;gains from trade;

_____an increase in the maximum amount of goods and services an _____an increase in the maximum amount of goods and services an economy can produce. economy can produce.

_____An economic principle that states that by dividing tasks and _____An economic principle that states that by dividing tasks and trading, people can get more of what they want through trading, people can get more of what they want through tradetrade than they than they could if they tried to be self-sufficient. could if they tried to be self-sufficient.

_____when you give up something in order to have something else._____when you give up something in order to have something else.

_____shows the maximum quantity of one good that can be produced for _____shows the maximum quantity of one good that can be produced for each possible quantity of the other good produced. It illustrates the trade-each possible quantity of the other good produced. It illustrates the trade-offs facing an economy that produces only two goods.offs facing an economy that produces only two goods.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. economic growth; 2. trade-off; 3. production possibilities curve; 4. 1. economic growth; 2. trade-off; 3. production possibilities curve; 4. gains from trade;gains from trade;

____11__an increase in the maximum amount of goods and services an __an increase in the maximum amount of goods and services an economy can produce. economy can produce.

____44__An economic principle that states that by dividing tasks and __An economic principle that states that by dividing tasks and trading, people can get more of what they want through trading, people can get more of what they want through tradetrade than they than they could if they tried to be self-sufficient. could if they tried to be self-sufficient.

____22__when you give up something in order to have something else.__when you give up something in order to have something else.

____33__shows the maximum quantity of one good that can be produced for __shows the maximum quantity of one good that can be produced for each possible quantity of the other good produced. It illustrates the trade-each possible quantity of the other good produced. It illustrates the trade-offs facing an economy that produces only two goods.offs facing an economy that produces only two goods.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. demand curve; 2. change in demand; 3. movement along the 1. demand curve; 2. change in demand; 3. movement along the demand curve; 4. substitutes;demand curve; 4. substitutes;

_____pairs of goods for which a rise in the price of one of the goods _____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. leads to an increase in the demand for the other good.

_____a change in the _____a change in the quantity demandedquantity demanded of a good that results from a of a good that results from a change in the price of that good.change in the price of that good.

_____a shift of the _____a shift of the demand curvedemand curve, which changes the quantity demanded , which changes the quantity demanded at any given price.at any given price.

_____a graphical representation of the _____a graphical representation of the demand scheduledemand schedule, showing the , showing the relationship between relationship between quantity demandedquantity demanded and price. and price.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. demand curve; 2. change in demand; 3. movement along the 1. demand curve; 2. change in demand; 3. movement along the demand curve; 4. substitutes;demand curve; 4. substitutes;

____44__pairs of goods for which a rise in the price of one of the goods __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. leads to an increase in the demand for the other good.

____33__a change in the __a change in the quantity demandedquantity demanded of a good that results from a of a good that results from a change in the price of that good.change in the price of that good.

____22__a shift of the __a shift of the demand curvedemand curve, which changes the quantity demanded , which changes the quantity demanded at any given price.at any given price.

____11__a graphical representation of the __a graphical representation of the demand scheduledemand schedule, showing the , showing the relationship between relationship between quantity demandedquantity demanded and price. and price.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. complements; 2. normal good; 3. inferior good; 4. supply curve;1. complements; 2. normal good; 3. inferior good; 4. supply curve;

_____a good for which a rise in income decreases the demand for the _____a good for which a rise in income decreases the demand for the good.good.

_____a graphical representation of the _____a graphical representation of the supply schedulesupply schedule, showing the , showing the relationship between relationship between quantity suppliedquantity supplied and price. and price.

_____pairs of goods for which a rise in the price of one good leads to a _____pairs of goods for which a rise in the price of one good leads to a decrease in the demand for the other good.decrease in the demand for the other good.

_____a good for which a rise in income increases the demand for that _____a good for which a rise in income increases the demand for that good—the “normal” case.good—the “normal” case.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. complements; 2. normal good; 3. inferior good; 4. supply curve;1. complements; 2. normal good; 3. inferior good; 4. supply curve;

____33__a good for which a rise in income decreases the demand for the __a good for which a rise in income decreases the demand for the good.good.

____44__a graphical representation of the __a graphical representation of the supply schedulesupply schedule, showing the , showing the relationship between relationship between quantity suppliedquantity supplied and price. and price.

____11__pairs of goods for which a rise in the price of one good leads to a __pairs of goods for which a rise in the price of one good leads to a decrease in the demand for the other good.decrease in the demand for the other good.

____22__a good for which a rise in income increases the demand for that __a good for which a rise in income increases the demand for that good—the “normal” case.good—the “normal” case.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. change in supply; 2. movements along the supply curve; 3. input; 4. 1. change in supply; 2. movements along the supply curve; 3. input; 4. equilibrium;equilibrium;

_____a shift of the _____a shift of the supply curvesupply curve, which changes the quantity supplied at , which changes the quantity supplied at any given price. any given price.

_____a change in the _____a change in the quantity suppliedquantity supplied of a good that results from a of a good that results from a change in the price of that good.change in the price of that good.

_____a good or service used to produce another good or service._____a good or service used to produce another good or service.

_____an economic situation in which no individual would be better off _____an economic situation in which no individual would be better off doing something different.doing something different.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. change in supply; 2. movements along the supply curve; 3. input; 4. 1. change in supply; 2. movements along the supply curve; 3. input; 4. equilibrium;equilibrium;

____11__a shift of the __a shift of the supply curvesupply curve, which changes the quantity supplied at , which changes the quantity supplied at any given price. any given price.

____22__a change in the __a change in the quantity suppliedquantity supplied of a good that results from a of a good that results from a change in the price of that good.change in the price of that good.

____33__a good or service used to produce another good or service.__a good or service used to produce another good or service.

____44__an economic situation in which no individual would be better off __an economic situation in which no individual would be better off doing something different.doing something different.

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. equilibrium price; 2. equilibrium quantity; 3. surplus; 4. shortage;1. equilibrium price; 2. equilibrium quantity; 3. surplus; 4. shortage;

_____the price at which the market is in _____the price at which the market is in equilibriumequilibrium, that is, the quantity , that is, the quantity of a good or service demanded equals the quantity of that good or of a good or service demanded equals the quantity of that good or service supplied; also referred to as the service supplied; also referred to as the market-clearing pricemarket-clearing price..

_____the quantity of a good or service bought and sold at the _____the quantity of a good or service bought and sold at the equilibriumequilibrium (or (or market-clearingmarket-clearing) ) priceprice. .

_____the excess of a good or service that occurs when the _____the excess of a good or service that occurs when the quantity quantity suppliedsupplied exceeds the exceeds the quantity demanded;quantity demanded; surpluses occur when the surpluses occur when the price is above the price is above the equilibrium priceequilibrium price..

_____the insufficiency of a good or service that occurs when the _____the insufficiency of a good or service that occurs when the quantity quantity demandeddemanded exceeds the exceeds the quantity supplied;quantity supplied; shortages occur when the shortages occur when the price is below the price is below the equilibrium priceequilibrium price..

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. equilibrium price; 2. equilibrium quantity; 3. surplus; 4. shortage;1. equilibrium price; 2. equilibrium quantity; 3. surplus; 4. shortage;

____11__the price at which the market is in __the price at which the market is in equilibriumequilibrium, that is, the quantity , that is, the quantity of a good or service demanded equals the quantity of that good or of a good or service demanded equals the quantity of that good or service supplied; also referred to as the service supplied; also referred to as the market-clearing pricemarket-clearing price..

____22__the quantity of a good or service bought and sold at the __the quantity of a good or service bought and sold at the equilibriumequilibrium (or (or market-clearingmarket-clearing) ) priceprice. .

____33__the excess of a good or service that occurs when the __the excess of a good or service that occurs when the quantity quantity suppliedsupplied exceeds the exceeds the quantity demanded;quantity demanded; surpluses occur when the surpluses occur when the price is above the price is above the equilibrium priceequilibrium price..

____44__the insufficiency of a good or service that occurs when the __the insufficiency of a good or service that occurs when the quantity quantity demandeddemanded exceeds the exceeds the quantity supplied;quantity supplied; shortages occur when the shortages occur when the price is below the price is below the equilibrium priceequilibrium price..

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. deadweight loss; 2. inefficient allocation to consumers; 3. price 1. deadweight loss; 2. inefficient allocation to consumers; 3. price floor; 4. price ceilings;floor; 4. price ceilings;

_____losses associated with quantities of _____losses associated with quantities of outputoutput that are greater than or that are greater than or less than the efficient level, as can result from market intervention such less than the efficient level, as can result from market intervention such as taxes, or from externalities such as pollution. as taxes, or from externalities such as pollution.

_____the maximum price sellers are allowed to charge for a good or _____the maximum price sellers are allowed to charge for a good or service; a form of service; a form of price controlprice control..

_____a form of inefficiency in which sellers who would be willing to sell a _____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 good at the lowest price are not always those who actually manage to sell it; often the result of a sell it; often the result of a price floorprice floor..

_____the minimum price buyers are required to pay for a good or _____the minimum price buyers are required to pay for a good or service; a form of service; a form of price controlprice control..

Mr. Weiss

Test 1 – Sections 1 & 2 – Vocabulary ReviewTest 1 – Sections 1 & 2 – Vocabulary Review

1. deadweight loss; 2. inefficient allocation to consumers; 3. price 1. deadweight loss; 2. inefficient allocation to consumers; 3. price floor; 4. price ceilings;floor; 4. price ceilings;

____11__losses associated with quantities of __losses associated with quantities of outputoutput that are greater than or that are greater than or less than the efficient level, as can result from market intervention such less than the efficient level, as can result from market intervention such as taxes, or from externalities such as pollution. as taxes, or from externalities such as pollution.

____44__the maximum price sellers are allowed to charge for a good or __the maximum price sellers are allowed to charge for a good or service; a form of service; a form of price controlprice control..

____22__a form of inefficiency in which sellers who would be willing to sell a __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 good at the lowest price are not always those who actually manage to sell it; often the result of a sell it; often the result of a price floorprice floor..

____33__the minimum price buyers are required to pay for a good or __the minimum price buyers are required to pay for a good or service; a form of service; a form of price controlprice control..