This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Demand > Demand – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Demand Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following market structures results in allocative efficiency? A) Monopolistic Competition. B) Monopoly. C) Oligopoly. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 2. Which of the following parts of a consumer budget would be most price elastic? A) Telephone. B) Housing. C) Automobile. D) Cable. Show Answer Correct Answer: B) Housing. 3. How is the law of demand illustrated on a demand curve? A) Upward sloping curve. B) Vertical slope curve. C) Downward sloping curve. D) Horizontal slope curve. Show Answer Correct Answer: C) Downward sloping curve. 4. Normal goods have negative income effect A) True. B) False. C) None of the above. D) None of above. Show Answer Correct Answer: B) False. 5. Lower prices leads to higher demand. A) Law of Supply. B) Law of Demand. C) Law of Economics. D) Law of Supply and Demand Song Hi-ho the market O. Show Answer Correct Answer: B) Law of Demand. 6. Demand is the desire, ....., and willingness to buy a product or service. A) Ability. B) Incentive. C) Utility. D) Graph. Show Answer Correct Answer: A) Ability. 7. If an increase in a consumers income, decreases the demand for a product, it is a ..... good. A) Substitute. B) Compliment. C) Inferior. D) Normal. Show Answer Correct Answer: C) Inferior. 8. What kind of system is the United States economy based on? A) Demand. B) Market economy. C) Supply. D) None of above. Show Answer Correct Answer: B) Market economy. 9. Which of the following illustrates the economic meaning of demand? A) Alice orders he brother to turn down the loud music he is playing in his room. B) Rico say he wants a new pair of in-line skates. C) Shoes go on sale and Micheal buys two pairs instead of one. D) None of these. Show Answer Correct Answer: C) Shoes go on sale and Micheal buys two pairs instead of one. 10. Which of the following would cause the demand curve to shift to the right? A) A popular toys loses appeal. B) Price of a substitute good decreases. C) Huge population increase. D) Suppliers expect higher prices in the future. Show Answer Correct Answer: C) Huge population increase. 11. What is not an example of a complement A) Skis and ski boots. B) Row boat and oars. C) Electric shaver and charging cord. D) Calculator and cell phone. Show Answer Correct Answer: D) Calculator and cell phone. 12. If America decided to ban the import of oil from Saudi Arabia and Iran, the price of oil would: A) Rise. B) Decrease. C) Not change. D) None of above. Show Answer Correct Answer: A) Rise. 13. The demand for a(n) ..... increases as money income increases-that is, the demand curve shifts rightward when consumer income increases. A) Superior good. B) Inferior good. C) Normal good. D) Declining good. Show Answer Correct Answer: C) Normal good. 14. Consumers demand more of this type of good when their income rises. A) Elastic good. B) Inferior good. C) Normal good. D) Substitution good. Show Answer Correct Answer: C) Normal good. 15. You get a raise at work. What would happen to the demand for going out to eat? A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Increase. 16. ..... is price multiplied by the quantity demanded at the price. A) Total revenue. B) Marginal utility. C) Demand. D) Law of demand. Show Answer Correct Answer: A) Total revenue. 17. This factor has the greatest impact on what producers want to make A) Features. B) Price. C) Color. D) Environmental impact. Show Answer Correct Answer: B) Price. 18. Which of the following is an example of a price floor? A) Setting a minimum wage. B) Establishing rent controls. C) Rationing tires. D) Limiting the ticket prices. Show Answer Correct Answer: A) Setting a minimum wage. 19. Other things equal, if a good has more substitutes, its price elasticity of demand is: A) Larger. B) Smaller. C) Zero. D) Unity. Show Answer Correct Answer: A) Larger. 20. What is not an example of a substitute? A) Disneyland and Six Flags. B) Peanut butter and jelly. C) Hershey's and Nestle chocolate. D) Microsoft Word and Google Docs. Show Answer Correct Answer: B) Peanut butter and jelly. 21. The economist's objections to monopoly rest on which of the following grounds? A) There is a transfer of income from consumers to the monopolist. B) There is welfare loss as resources tend to be misallocated under monopoly. C) Only A is correct. D) Both A and B are correct. Show Answer Correct Answer: D) Both A and B are correct. 22. The demand curve is always ..... A) Downward sloping. B) Level. C) Upward sloping. D) Irregular. Show Answer Correct Answer: A) Downward sloping. 23. When a manufacturer of pain medication reduced the price of the medication by 30%, profits declined by almost exactly 30%. Demand for the product is A) Elastic. B) Inelastic. C) Complementary. D) Unit elastic. Show Answer Correct Answer: D) Unit elastic. 24. Land and labor and A) Capital. B) Cat. C) Cause. D) None of above. Show Answer Correct Answer: A) Capital. 25. The basic questions that every society must answer include A) What, how and for whom. B) Where, when and why. C) Which, why and what. D) When, how and which. Show Answer Correct Answer: A) What, how and for whom. 26. Real income refers to A) How much money you actually earn. B) Your income minus your taxes. C) How much your income can buy. D) Your income minus taxes and benefits. Show Answer Correct Answer: C) How much your income can buy. 27. A decrease in the price of peanut butter, will cause the demand for video games to: A) Increase. B) Decrease. C) Not change at all. D) None of above. Show Answer Correct Answer: C) Not change at all. 28. The change in total output brought about by adding one more worker A) Marginal Product. B) Decreasing Returns. C) Increasing Returns. D) Specialization. Show Answer Correct Answer: A) Marginal Product. 29. Quantity demanded changes little as price changes A) Inelastic. B) Scarcity. C) Elastic. D) Unit Elastic. Show Answer Correct Answer: A) Inelastic. 30. When the demand schedule is graphed, we create A) The law of demand. B) The demand curve. C) Demand. D) Law of diminish marginal utility. Show Answer Correct Answer: B) The demand curve. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesDemand Quiz 1Demand Quiz 2Demand Quiz 3Demand Quiz 4Demand Quiz 6Demand Quiz 7Demand Quiz 8Demand Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books