Economics Unit 2

Front

What is marginal utility? (Chapter 4 Lesson 1)

Back

The additional satisfaction or benefit received from consuming one more unit of a good or service.

Front

When consumers hear rumors or negative reports about a product's safety, people will buy ____ of the product, which will lead to a _______ in the demand and price.

Back

less decrease

Front

The demand curve is downward-sloping because:

Back

it reflects the inverse relationship between price and quantity demanded.

Front

The main thing to remember is that all normal supply curves have a ________ _______, which means that it goes up when you read the diagram from left to right. This shows that if the ______ ​​​​​​​goes up, the quantity supplied will go up​​​​​​ too.

Back

positive slope price

Front

Without prices, another system must be used to decide who gets what. One method is ________ a system under which government decides everyone’s “fair” share. (Chapter 6 Lesson 1)

Back

rationing

Front

Using the previous question's answer what challenges would exist with the new price system: ________, ________, ________, and ________. (Chapter 6 Lesson 1)

Back

perceived fairness, administrative expense, distorted incentives, abuse and misuse

Front

A _________ occurs when the quantity supplied is greater than the quantity demanded at a given price. A _________ is a situation where the quantity demanded is greater than the quantity supplied at a given price.

Back

surplus shortage