Mr. Campbell’s Economics Class Demand Review Click here to begin
Economics Review If you can do well on this review, you will be in good shape for the test Click here to continue
Question #1 Which of the following is NOT a requirement for demand to exist? Desire Ability Aptitude Willingness
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Question #2 The study of behaviors and decisions that people make is called? Econometrics Micro Economics Macro Economics Personal Finance
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Question #3 A demand schedule is which of the following? Listings Picture Graph
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Question #4 The demand schedule shows various quantities of a product over a wide period of time? True False
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Question #5 You normally have to create a demand schedule first, then create a demand graph TRUE FALSE
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Question #6 The Law of Demand (LoD) is what type of relationship? Inverse Positive Upward Sloping
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Question #7 The LoD assumes that people behave normally. FALSETRUE
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Question #8 LoD: price represents a/an ______ for people to buy items Barrier to entry Common sense Obstacle Amount wanted
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Question #9 The amount of usefulness that someone gets from a product is called? demand utility inverse supply
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Question #10 the extra satisfaction a person gets from using ONE more unit of product is called Marginal Demand Diminishing Demand Diminishing Utility Marginal Utility
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Question #11 the extra satisfaction a person gets from using one more product get less and less each time Diminishing marginal utility Diminishing Demand Diminishing Returns Productivity
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Question #12 The change in price causes a ______ the demand curve Movement along No change in Shift in
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Question #13 If a product has an inelastic demand, price and expenditure move … In opposite directions No change in In same direction
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Question #14 when prices increase, the demand for g/s will result in? Demand for more products Demand for fewer products Reduced demand for substitutes Increased demand for complements
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Question #15 Two products that are closely related together in their demand are called substitutes unrelated elastic complements
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Question #16 Advertising, fashion trends, and new product introductions serve to create consumer needs increase income effectiveness create consumer demand minimize the income effect
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Question #17 A price increase has little or no effect on how much people buy, the demand for the product is Complementary Substitutes Inelastic Elastic
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Question #18 Which of the following DOES NOT cause a movement along the DC Income Effect Consumer Tastes Substitution Effect
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Question #19 The income effect alters what? People ability to substitute one good for another The number of consumers buying a product Peoples real income Substitutes available for purchase
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Question #20 The substitution effect allows consumers to … Replace one expensive item with a cheaper item Increase their income to buy whatever they want Increase Demand for the original product
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Question #21 When an item may cause poor health, or you are just tired of something, that will … Move prices along the DC Shift the DC left Shift the DC right Have no effect on the DC
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Question #22 Two products that are closely related together in their demand are called substitutes unrelated elastic complements
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Question #23 When consumer income rises, demand rises as well, shifting the DC left for any given product TRUE FALSE
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Question #24 when the price for good A increase, the demand for good B also increase, these goods are … substitutes unrelated elastic complements
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Question #25 which of the following are NOT complementary goods? Cars and tires PBJ Butter and margarine Ketchup and french fries
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Question #26 If you think prices are going up NEXT week, you will buy ____ More next week More this week Less right now None at all
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Question #27 If you have more consumers competing for one product, then the DC will … Shift left Move along the curve Not shift Shift right
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Question #28 Elasticity measures the responsiveness of quantity to a change in … taste price expectations
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Question #29 when a change in price causes a relatively larger change in quantity demanded, a product is said to be … elastic inelastic
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Question #30 when a customer’s demand for a product moves in the amount (percentage wise) as the price increase, it is inelastic elastic Unit elastic
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Question #31 The LoD has a ________ relationship between price and quantity wanted proportional inverse complementary
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Question #32 If you ask your self “can this purchase be delayed?” and you say yes, then the product is … inelastic substitutes complementary elastic
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Question #33 the period of production that is too short for any adjustments in production, other than labor, is called … Long run Short run
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Question #34 if you multiple the price of a product times the quantity demanded (sold), it is called? Inelastic demand Marginal price Law of Supply Total Expenditure
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Congratulations If you did well on this review, you will do well on the test on Tuesday Click here to see the test format Click here to complete the Review
Test Format The test is set up as: Five True / False Questions Thirteen Multiple Choice Questions Ten Matching Questions Click here for more test info
General Test Info Test will be scantron format (bring a pencil) There will be bonus questions (general economics and cultural knowledge) There will be a headlines part, a demand graph, and the test questions (three parts) Click here to complete the Review
Good luck on the test on Tuesday!