Unit 2 Microeconomics Vocabulary

Q1: The study of how households and firms make decisions and how they interact in markets

• Microeconomics

• Macroeconomics

Q14: A legal minimum on the price at which a good can be sold.

• Equilibrium Price

• Price Floor

• Price Ceiling

• Surplus

• Shortage

Q26: When many businesses sell the same product and there is a plentiful supply of that good or service.

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

Q24: A market structure in which a few large firms dominate a market.

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

Q19: Price ceiling created by the government that creates affordable pricing in shelter.

• Minimum Wage

• Rent control housing

Q7: Producers offer more of a good as its price increases and less as its price falls.

• Law of Supply

• Law of Demand

Q22: A business owned by stockholders who share in its profits but are not personally responsible for its debts.

• Sole Proprietorship

• Partnership

• Corporation

Q8: Consumers buy more of a good when its price decreases and less when its price increases.

• Law of Supply

• Law of Demand

Q16: A legal maximum on the price at which a good can be sold.

• Equilibrium Price

• Price Floor

• Price Ceiling

• Surplus

• Shortage

Q17: A situation in which quantity demanded is greater than quantity supplied.

• Equilibrium Price

• Price Floor

• Price Ceiling

• Surplus

• Shortage