AP Microeconomics: Demand and Supply flashcards

Question 1

What is the term for the extra benefit consumers get from buying a good, measured as what they would have been willing to pay minus what they actually paid?

Accepted Answer

Consumer surplus

Question 2

What is the term for the loss in social surplus when a market produces an inefficient quantity?

Accepted Answer

Deadweight loss

Question 3

In economics, what is the relationship between a good's price and the quantity demanded called?

Accepted Answer

Demand

Question 4

What is the graph of price against quantity demanded called, with quantity on the horizontal axis and price on the vertical axis?

Accepted Answer

The demand curve

Question 5

What is a table of prices for a good and the quantity demanded at each price called?

Accepted Answer

A demand schedule

Question 6

What is the situation called in which quantity demanded equals quantity supplied?

Accepted Answer

Equilibrium

Question 7

What is the price at which quantity demanded equals quantity supplied called?

Accepted Answer

The equilibrium price

Question 8

What is the term for a situation where, at the existing price, the quantity demanded is greater than the quantity supplied?

Accepted Answer

Excess demand (a shortage)

Question 9

What is the term for a situation where, at the existing price, the quantity supplied is greater than the quantity demanded?

Accepted Answer

Excess supply (a surplus)

Question 10

What are resources such as labor, materials, and machinery that are used to produce goods and services called?

Accepted Answer

Factors of production (inputs)

Question 11

What is a good called whose quantity demanded falls as income rises and rises as income falls?

Accepted Answer

An inferior good

Question 12

What is the usual relationship called in which a higher price leads to a lower quantity demanded, with all other variables held constant?

Accepted Answer

The law of demand

Question 13

What is the usual relationship called in which a higher price leads to a greater quantity supplied, with all other variables held constant?

Accepted Answer

The law of supply

Question 14

What is a good called whose quantity demanded rises as income rises and falls as income falls?

Accepted Answer

A normal good

Question 15

What is a legal maximum price called?

Accepted Answer

A price ceiling

Question 16

What is a legal minimum price called?

Accepted Answer

A price floor

Question 17

What are government laws that regulate prices instead of letting market forces set them called?

Accepted Answer

Price controls

Question 18

What is the term for the extra benefit producers get from selling a good, measured as the price they actually received minus the price they would have been willing to accept?

Accepted Answer

Producer surplus

Question 19

What is it called when a change in some economic factor other than price causes a different quantity to be demanded at every price?

Accepted Answer

A shift in demand

Question 20

What is it called when a change in some economic factor other than price causes a different quantity to be supplied at every price?

Accepted Answer

A shift in supply

Question 21

What is the sum of consumer surplus and producer surplus called?

Accepted Answer

Social surplus

Question 22

What is a good called that can replace another to some extent, so that more consumption of one can mean less of the other?

Accepted Answer

A substitute

Question 23

In economics, what is the relationship between a good's price and the quantity supplied called?

Accepted Answer

Supply

Question 24

What is the graph of price against quantity supplied called, with quantity supplied on the horizontal axis and price on the vertical axis?

Accepted Answer

The supply curve

Question 25

What is a table of prices for a good and the quantity supplied at each price called?

Accepted Answer

A supply schedule

AP Microeconomics: Demand and Supply flashcards

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