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Economics ReviewIf you can do well
on this review, you will be in good
shape for the test
Click here to continue
Question #1Which of the following is NOT a requirement for demand to exist?
Desire Ability
Aptitude Willingness
Question #2The study of behaviors and decisions that people make is called?
Econometrics Micro Economics
Macro Economics
Personal Finance
Question #4The demand schedule shows various quantities of a product over a wide period of time?
True False
Question #5You normally have to create a demand schedule first, then create a demand graph
TRUE FALSE
Question #8LoD: price represents a/an ______ for people to buy items
Barrier to entry
Common sense
Obstacle Amount wanted
Question #9The amount of usefulness that someone gets from a product is called?
demand utility
inverse supply
Question #10the extra satisfaction a person gets from using ONE more unit of product is called
Marginal Demand
Diminishing Demand
Diminishing Utility
Marginal Utility
Question #11the extra satisfaction a person gets from using one more product get less and less each time
Diminishing marginal
utility
Diminishing Demand
Diminishing Returns
Productivity
Question #12The change in price causes a ______ the demand curve
Movement along No change in
Shift in
Question #13If a product has an inelastic demand, price and expenditure move …
In opposite direction
sNo change in
In same direction
Question #14when 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
Question #15Two products that are closely related together in their demand are called
substitutes unrelated
elastic complements
Question #16 Advertising, fashion trends, and new product introductions serve to
create consumer
needs
increase income
effectiveness
create consumer demand
minimize the income effect
Question #17A price increase has little or no effect on how much people buy, the demand for the product is
Complementary Substitutes
Inelastic Elastic
Question #18Which of the following DOES NOT cause a movement along the DC
Income Effect
Consumer Tastes
Substitution Effect
Question #19The 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
Question #20The 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
Question #21When 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
Question #22Two products that are closely related together in their demand are called
substitutes unrelated
elastic complements
Question #23When consumer income rises, demand rises as well, shifting the DC left for any given product
TRUE FALSE
Question #24when the price for good A increase, the demand for good B also increase, these goods are …
substitutes unrelated
elastic complements
Question #25which of the following are NOT complementary goods?
Cars and tires
PBJ
Butter and margarine
Ketchup and french fries
Question #26If you think prices are going up NEXT week, you will buy ____
More next week
More this week
Less right now
None at all
Question #27If you have more consumers competing for one product, then the DC will …
Shift left Move along the curve
Not shift Shift right
Question #28Elasticity measures the responsiveness of quantity to a change in …
taste price
expectations
Question #29when a change in price causes a relatively larger change in quantity demanded, a product is said to be …
elastic inelastic
Question #30when a customer’s demand for a product moves in the amount (percentage wise) as the price increase, it is
inelastic elastic
Unit elastic
Question #31The LoD has a ________ relationship between price and quantity wanted
proportional inverse
complementary
Question #32If you ask your self “can this purchase be delayed?” and you say yes, then the product is …
inelastic substitutes
complementary elastic
Question #33the period of production that is too short for any adjustments in production, other than labor, is called …
Long run Short run
Question #34if you multiple the price of a product times the quantity demanded (sold), it is called?
Inelastic demand
Marginal price
Law of SupplyTotal
Expenditure
Congratulations
If you did well on this review, you will do well on the test on TuesdayClick here to see the test
format
Click here to complete the
Review
Test FormatThe 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