Economics -2

It is the amount (number of units) of a product that a household would buy in a given time period if it could buy all it wanted at the current market price.

• Quantity demanded
• Quantity supplies
• Market

It is a table showing how much of a given product a household would be willing to buy at different prices

• demand schedule
• demand curve
• market

Demand curves are usually derived from demand schedules

• True
• False

It is a graph illustrating how much of a given product a household would be willing to buy at different prices.

• demand curve
• supply curve
• market

Demand curves are usually derived from demand schedules.

• True
• False

The law of demand states that there is a negative, or inverse, relationship between price and the quantity of a good demanded and its price.

• True
• False

Income is the sum of all households wages, salaries, profits, interest payments, rents, and other forms of earnings in a given period of time.  It is a flow measure.

• True
• False

Wealth, or net worth, is the total value of what a household owns minus what it owes.  It is a stock measure.

• True
• False

Normal Goods are goods for which demand goes up when income is higher and for which demand goes down when income is lower.

• True
• False

Inferior Goods are goods for which demand falls when income rises.

• True
• False