Principles of Macroeconomics:
Chapter 4 Exam Questions
with Answers
Demand - Correct Answers: A relationship between price and the quantity demanded of a certain good
or service.
Quantity demanded - Correct Answers: The total number of units of a good or service purchased at a
certain price.
Law of demand - Correct Answers: The common relationship that a higher price leads to a lower
quantity demanded of a certain good or service.
Demand schedule - Correct Answers: A table that shows a range of prices for a certain good or service
and the quantity demanded at each price.
Demand curve - Correct Answers: A line that shows the relationship between price and quantity
demanded of a certain good or service on a graph, with quantity on the horizontal axis and price on the
vertical axis.
Supply - Correct Answers: A relationship between price and the quantity supplied of a certain good or
service.
Quantity supplied - Correct Answers: The total number of units of a good or service sold at a certain
price.
Law of supply - Correct Answers: The common relationship that a higher price is associated with a
greater quantity supplied.
Supply schedule - Correct Answers: A table that shows a range of prices for a good or service and the
quantity supplied at each price.
