Quiz
Exam 2 PPT Slides - Economics
Questions in this quiz (21)
1Economics is the study of how individuals and societies allocate their limited resources in attempts to satisfy their unlimited wants.
- ATrue
- BFalse
2Utility is the economic term for the satisfaction obtained from consumption of a good (or service).
- ATrue
- BFalse
3The 3 basic resources in economic are:
- ANatural resources (e.g. land)
- BLabor
- CCapital (i.e. money, physical resources)
- DThere's really only 2 basic resources; Natural resources (e.g. land) and Capital (i.e. money, physical resources).
4Cost is proportional to constraints.
- ATrue
- BFalse
5Law of diminishing marginal utility: the satisfaction received by obtaining one more unit of a good declines as one consumes more of it.
- ATrue
- BFalse
6___________ is determined by marginal utility – the satisfaction obtained from receiving one more of a good (or service).
- AValue
- BCost
- CSupply
- DFree market
7Law of ___________: the quantity demanded of a commodity is inversely proportional to its price. (i.e. the higher the price, the less of it one wants.)
- Ademand
- Bsupply
- Cdiminishing marginal utility
8Change in ________________ moves along the demand curve.
- Aquantity demanded
- Bdemand
9Change in __________ is when the entire curve shifts.
- Ademand
- Bquantity demanded
10Factors that change demand: (check all that applies)
- APrices of related goods (substitutes or complements)
- BMoney income of the consumer (Superior goods or inferior goods)
- CNumber of consumers in the market
- DAttitudes, tastes, and preferences of the consumer
- EConsumer expectations with respect to future prices and incomes
11Law of supply: as the price that individuals are willing to pay for a product increases, the more of the product that will be supplied.
- ATrue
- BFalse
12Change in _______________ moves along the supply curve.
- Aquantity supplied
- Bsupply
13Change in ___________ is when the entire curve shifts.
- Asupply
- Bquantity supplied
14Factors that change supply include? (check all that applies)
- ATechniques of production, including technology
- BNumber of sellers in the market (more sellers = more supply)
- CResource costs (material and wages) (cost increase, seller makes less, less incentive to produce)
- DSellers’ expectations
- EPrices for related goods
15The __________________ is that price where the demand curve and supply curve intersect.
- Amarket equilibrium price
- Bprice system
16The _________ system – the interaction of supply and demand – determines how economic resources are allocated.
- Aprice
- Bsupply
- Cmarket equilibrium
17Elasticity measure the responsiveness of consumer demands to a change in price.
- ATrue
- BFalse
18What type of elasticity of demand is this?
Demand is _______ if an increase in price causes the quantity demanded to decrease enough to result in a decrease of total revenue.
￪P,￬R- AElastic demand
- BInelastic demand
- CUnitary demand
19What type of elasticity of demand is this?
Demand is _________ if total revenue is unchanged regardless of changes in price.
Not present in the real world.- AUnitary demand
- BInelastic demand
- CElastic demand
20What type of elasticity of demand is this?
Demand is ________ if an increase in price does not result in a sufficient decrease in quantity demanded to prevent a decrease in revenue.
￪P,￪R- AInelastic demand
- BElastic demand
- CUnitary demand
21Determinants of elasticity of demand:
-Availability of substitutes
-Price relative to income
-Number of alternatives- ATrue
- BFalse
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- Exam 2 PPT Slides - Economics
- Author
- Kevin Vu
- Language
- English
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