Demand Quiz 22 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Which item would provide you with the least marginal utility?

Correct Answer: A) A second copy of the daily newspaper.

2. A table that shows how much of a good or service an individual producer is willing and able to offer for sale at each price in a market

Correct Answer: B) Supply Schedule.

3. A government payment made to a business is a

Correct Answer: C) Subsidy.

4. For the law of demand, as price rises, what happens to quantity demanded?

Correct Answer: B) It goes down.

5. As money income increases, what happens to the demand for inferior goods?

Correct Answer: C) It decreases.

6. Buying only one instead of two sodas at lunch time describes what concept?

Correct Answer: D) Diminishing marginal utility.

7. ..... are goods and services that can be used in place of each other.

Correct Answer: B) Substitute.

8. The downside of the business cycle, when the economy slows down and unemployment goes up, is called

Correct Answer: B) Contraction.

9. Two goods that are bought and used together are called .....

Correct Answer: A) Complements.

10. If there is movement on a demand curve, we call the resulting change in quantity consumers buy

Correct Answer: A) A change in quantity demanded.

11. Goods that people can easily do without have:

Correct Answer: A) Elastic demand.

12. Suppose a product's elasticity of demand is 1.7. How responsive is the quantity demanded to a change in price?

Correct Answer: B) Relatively responsive.

13. When CDs became popular, people stopped listening to tape cassettes. This caused the ..... curve for tape cassettes to shift .....

Correct Answer: B) Demand left.

14. The amount of satisfaction an individual receives from consuming a product.

Correct Answer: A) Utility.

15. Utility is being

Correct Answer: A) Useful.

16. A graphic representation of the quantities of a good that will be bought at each price

Correct Answer: A) Demand curve.

17. If quantity demanded is completely unresponsive to changes in price, demand is:

Correct Answer: D) Perfectly inelastic.

18. A shift of the demand curve represents

Correct Answer: C) A change in demand.

19. Coke raises their prices. What will happen to Pepsi?

Correct Answer: A) Increase Demand.

20. Costs that vary as the level of production out changes

Correct Answer: B) Variable Costs.