Econ 201 Exam 2 Questions and
Answers 100% Pass
the amount of a good that households want to consume given their income and prices
in a given time period - ✔✔quantity demanded
shows the relationship between the price level and the quantity demanded -
✔✔demand schedule
as the price of a good increases, the quantity demanded falls - ✔✔law of demand
the price of a good compared to the price of another good - ✔✔relative price
as more units of a good are consumed, additional units provide less benefit - ✔✔law of
diminishing marginal benefit
amount consumer is willing to pay-amount actually must pay - ✔✔consumer surplus
the amount of a commodity that a firm plans to sell in a given time period at a given
price - ✔✔quantity supplied
as the price for which a good can be sold increases, the quantity of that good that is
supplied will increase - ✔✔law of supply
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, shows the relationship between the price level and the quantity supplied - ✔✔supply
schedule
the total economic cost of producing a good or service - ✔✔opportunity cost of
production
to supply additional units of a good, producers have greater opportunity costs, so the
price must rise to induce producers to supply greater quantities - ✔✔law of increasing
costs
an excess of sales revenue relative to the cost of production - ✔✔profit
a deficit of sales revenue relative to the opportunity cost of production - ✔✔loss
amount actually paid to producer -amount must be paid to be willing to provide the
good - ✔✔producer surplus
in the market is where quantity supplied=quantity demanded - ✔✔equilibrium
a situation in which all of the potential gains from trade have been realized -
✔✔economic efficiency
a movement along a demand curve caused by a change in the price level - ✔✔change in
quantity demanded
a shift of the entire demand curve due to a change in one of the determinants of
demand - ✔✔change in demand
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Answers 100% Pass
the amount of a good that households want to consume given their income and prices
in a given time period - ✔✔quantity demanded
shows the relationship between the price level and the quantity demanded -
✔✔demand schedule
as the price of a good increases, the quantity demanded falls - ✔✔law of demand
the price of a good compared to the price of another good - ✔✔relative price
as more units of a good are consumed, additional units provide less benefit - ✔✔law of
diminishing marginal benefit
amount consumer is willing to pay-amount actually must pay - ✔✔consumer surplus
the amount of a commodity that a firm plans to sell in a given time period at a given
price - ✔✔quantity supplied
as the price for which a good can be sold increases, the quantity of that good that is
supplied will increase - ✔✔law of supply
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
, shows the relationship between the price level and the quantity supplied - ✔✔supply
schedule
the total economic cost of producing a good or service - ✔✔opportunity cost of
production
to supply additional units of a good, producers have greater opportunity costs, so the
price must rise to induce producers to supply greater quantities - ✔✔law of increasing
costs
an excess of sales revenue relative to the cost of production - ✔✔profit
a deficit of sales revenue relative to the opportunity cost of production - ✔✔loss
amount actually paid to producer -amount must be paid to be willing to provide the
good - ✔✔producer surplus
in the market is where quantity supplied=quantity demanded - ✔✔equilibrium
a situation in which all of the potential gains from trade have been realized -
✔✔economic efficiency
a movement along a demand curve caused by a change in the price level - ✔✔change in
quantity demanded
a shift of the entire demand curve due to a change in one of the determinants of
demand - ✔✔change in demand
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
