ECO 201 Chapters 1-3 Exam Review
Questions and Answers 100% Pass
economics - ✔✔the social science concerned with how individuals, institutions, and
society make optimal choices under conditions of scarcity
scarcity - ✔✔limits placed on the amounts and types of goods and services available for
consumption as the result of there being only limited economic resources from which to
produce output
opportunity cost - ✔✔the amount of other products that must be forgone or sacrificed to
produce a unit of a product
utility - ✔✔the want-satisfying power of a good or service
microeconomics - ✔✔part of economics concerned with decision-making by individual
units, such as individuals and firms, and individual markets, specific goods and
services, and product and resource prices
factors of prodcution - ✔✔land, labor, capital, entrepreneurial ability
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
, demand - ✔✔a schedule or curve that shows the various amounts of a product that
consumers are willing and able to purchase at each of a series of possible prices during
a specified period of time.
demand schedule - ✔✔a table of numbers showing the amounts of a good or service
buyers are willing and able to purchase at various prices over a specified period of time.
law of demand - ✔✔the principle that, other things equal, an increase in a product's
price will reduce the quantity of it demanded, and conversely for a decrease in price.
demand curve - ✔✔a curve that illustrates the demand for a product by showing how
each possible price (on the vertical axis) is associated with a specific quantity demanded
(on the horizontal axis).
change in demand - ✔✔a movement of an entire demand curve or schedule such that
the quantity demanded changes at every particular price; caused by a change in one or
more of the determinants of demand.
change in quantity demanded - ✔✔a change in the quantity demanded along a fixed
demand curve (or within a fixed demand schedule) as a result of a change in the price
of the product.
supply - ✔✔a schedule or curve showing the various amounts of a product that
producers are willing and able to make available for sale at each of a series of possible
prices during a specific period
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
Questions and Answers 100% Pass
economics - ✔✔the social science concerned with how individuals, institutions, and
society make optimal choices under conditions of scarcity
scarcity - ✔✔limits placed on the amounts and types of goods and services available for
consumption as the result of there being only limited economic resources from which to
produce output
opportunity cost - ✔✔the amount of other products that must be forgone or sacrificed to
produce a unit of a product
utility - ✔✔the want-satisfying power of a good or service
microeconomics - ✔✔part of economics concerned with decision-making by individual
units, such as individuals and firms, and individual markets, specific goods and
services, and product and resource prices
factors of prodcution - ✔✔land, labor, capital, entrepreneurial ability
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
, demand - ✔✔a schedule or curve that shows the various amounts of a product that
consumers are willing and able to purchase at each of a series of possible prices during
a specified period of time.
demand schedule - ✔✔a table of numbers showing the amounts of a good or service
buyers are willing and able to purchase at various prices over a specified period of time.
law of demand - ✔✔the principle that, other things equal, an increase in a product's
price will reduce the quantity of it demanded, and conversely for a decrease in price.
demand curve - ✔✔a curve that illustrates the demand for a product by showing how
each possible price (on the vertical axis) is associated with a specific quantity demanded
(on the horizontal axis).
change in demand - ✔✔a movement of an entire demand curve or schedule such that
the quantity demanded changes at every particular price; caused by a change in one or
more of the determinants of demand.
change in quantity demanded - ✔✔a change in the quantity demanded along a fixed
demand curve (or within a fixed demand schedule) as a result of a change in the price
of the product.
supply - ✔✔a schedule or curve showing the various amounts of a product that
producers are willing and able to make available for sale at each of a series of possible
prices during a specific period
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
