George Mason University Economics Paper

FILL-IN ANSWERS– should use one of these terms to complete the fill-in question: climate, common resource, cost effectiveness, discount rate, equilibrium, excludability, law of demand, market failure, micro- economics, opportunity cost, positive externality, producer surplus, property right, quantity demanded, rivalry in consumption

1. Quantities increase on demand curves as prices go down because of the ______.
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2. Gradual changes in atmospheric temperatures, water levels, and vegetation over a broad area constitute altered ______.

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3. The difference between revenues paid for an item and its costs of production are a _______.

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4. The study of how a single market works is known as _____.

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5. If your next-door neighbor is a talented guitar player and you often hear her practicing through your common walls, you are enjoying a ______.

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6. If a merchant can ensure persons who use his/her product must pay for it, the item has the property of ____________.

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7. If total surplus is not maximized, then there is a ______.

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8. If quantity demanded equals quantity supplied, a market has reached a point of _______.

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9. The amount of snickers bars you’d be willing to buy if they cost $2.25 each is an example of a _______.

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10. Any policy that achieves a general goal at a lower cost than any other policy fulfills the economic principle of __________.