ECN 211 ASU LATEST COMPREHENSIVE EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔Law of supply - - ✔✔- The higher the price of a good, the more of that good sellers
will make
available over a specified time period (other things being equal).
✔✔Supply curve - ✔✔- Positively sloped line (curve) showing the direct relationship
between price
and quantity supplied, all else being equal
✔✔Equilibrium (market clearing) price - - ✔✔- The price at which quantity demanded
equals
quantity supplied
✔✔Equilibrium shortage - ✔✔The situation at which quantity demanded is greater than
quantity
supplied
✔✔Surplus - - ✔✔- The situation at which quantity supplied is greater than quantity
demanded
✔✔Price systems - - ✔✔- An economic system in which relative prices are constantly
changing to
, reflect changes in supply and demand
✔✔Voluntary exchange - ✔✔An act of trading between individuals in the price system,
which
makes both parties to the trade subjectively better off
✔✔Transaction costs - ✔✔the price and quality, service record, and durability of a
product
✔✔Price controls - ✔✔- Government-mandated minimum or maximum prices
✔✔Price ceiling - ✔✔- A legal maximum price
✔✔Price floor - - ✔✔A legal minimum Price
✔✔Non-price rationing devices - ✔✔All methods that are used to ration scarce goods
that are
price-controlled
✔✔Black market - ✔✔A market in which price-controlled goods are sold at an illegally
high price
✔✔Minimum wage - ✔✔A wage floor legislated by government that sets the lowest
hourly wage
rate that firms may legally pay their workers
✔✔Import quota - ✔✔- Supply restriction that prohibits the importation of more than a
specified
quantity of a particular good
✔✔Consumer surplus - - ✔✔The difference between the total amount that consumers
would have
been willing to pay for an item, and the total amount that they actually pay
✔✔Producer surplus - ✔✔The difference between the total amount that producers
actually receive
for an item, and the total amount that they would have been willing to accept for
supplying
that item
✔✔Labor force - - ✔✔Individuals aged 16 years or older who either have jobs or are
looking and
available for jobs; the number of employed plus the number of unemployed
QUESTIONS AND ANSWERS SURE A+
✔✔Law of supply - - ✔✔- The higher the price of a good, the more of that good sellers
will make
available over a specified time period (other things being equal).
✔✔Supply curve - ✔✔- Positively sloped line (curve) showing the direct relationship
between price
and quantity supplied, all else being equal
✔✔Equilibrium (market clearing) price - - ✔✔- The price at which quantity demanded
equals
quantity supplied
✔✔Equilibrium shortage - ✔✔The situation at which quantity demanded is greater than
quantity
supplied
✔✔Surplus - - ✔✔- The situation at which quantity supplied is greater than quantity
demanded
✔✔Price systems - - ✔✔- An economic system in which relative prices are constantly
changing to
, reflect changes in supply and demand
✔✔Voluntary exchange - ✔✔An act of trading between individuals in the price system,
which
makes both parties to the trade subjectively better off
✔✔Transaction costs - ✔✔the price and quality, service record, and durability of a
product
✔✔Price controls - ✔✔- Government-mandated minimum or maximum prices
✔✔Price ceiling - ✔✔- A legal maximum price
✔✔Price floor - - ✔✔A legal minimum Price
✔✔Non-price rationing devices - ✔✔All methods that are used to ration scarce goods
that are
price-controlled
✔✔Black market - ✔✔A market in which price-controlled goods are sold at an illegally
high price
✔✔Minimum wage - ✔✔A wage floor legislated by government that sets the lowest
hourly wage
rate that firms may legally pay their workers
✔✔Import quota - ✔✔- Supply restriction that prohibits the importation of more than a
specified
quantity of a particular good
✔✔Consumer surplus - - ✔✔The difference between the total amount that consumers
would have
been willing to pay for an item, and the total amount that they actually pay
✔✔Producer surplus - ✔✔The difference between the total amount that producers
actually receive
for an item, and the total amount that they would have been willing to accept for
supplying
that item
✔✔Labor force - - ✔✔Individuals aged 16 years or older who either have jobs or are
looking and
available for jobs; the number of employed plus the number of unemployed
