mr. campbell’s economics class demand review

Mr. Campbell’sEconomics ClassDemand Review

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Economics ReviewIf you can do well

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shape for the test

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Question #1Which of the following is NOT a requirement for demand to exist?

Desire Ability

Aptitude Willingness

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Question #2The study of behaviors and decisions that people make is called?

Econometrics Micro Economics

Macro Economics

Personal Finance

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Question #3A demand schedule is which of the following?

Listings Picture

Graph

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Question #4The demand schedule shows various quantities of a product over a wide period of time?

True False

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Question #5You normally have to create a demand schedule first, then create a demand graph

TRUE FALSE

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Question #6The Law of Demand (LoD) is what type of relationship?

Inverse Positive

Upward Sloping

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Question #7The LoD assumes that people behave normally.

FALSETRUE

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Question #8LoD: price represents a/an ______ for people to buy items

Barrier to entry

Common sense

Obstacle Amount wanted

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Question #9The amount of usefulness that someone gets from a product is called?

demand utility

inverse supply

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Question #10the 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 #11the extra satisfaction a person gets from using one more product get less and less each timeDiminishing

marginal utility

Diminishing Demand

Diminishing Returns

Productivity

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Question #12The change in price causes a ______ the demand curve

Movement along No change in

Shift in

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Question #13If a product has an inelastic demand, price and expenditure move …

In opposite direction

sNo change in

In same direction

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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

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Question #15Two 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 #17A 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 #18Which of the following DOES NOT cause a movement along the DC

Income Effect

Consumer Tastes

Substitution Effect

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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

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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

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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

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Question #22Two products that are closely related together in their demand are called

substitutes unrelated

elastic complements

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Question #23When consumer income rises, demand rises as well, shifting the DC left for any given product

TRUE FALSE

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Question #24when 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 #25which of the following are NOT complementary goods?

Cars and tires

PBJ

Butter and margarine

Ketchup and french fries

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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

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Question #27If 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 #28Elasticity measures the responsiveness of quantity to a change in …

taste price

expectations

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Question #29when 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 #30when 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 #31The LoD has a ________ relationship between price and quantity wanted

proportional inverse

complementary

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Question #32If 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 #33the 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 #34if you multiple the price of a product times the quantity demanded (sold), it is called?

Inelastic demand Marginal price

Law of SupplyTotal

Expenditure

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Congratulations

If you did well on this review, you will do well on the test on TuesdayClick here to see the test

format

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Review

Test FormatThe test is set up as: Five True / False Questions Thirteen Multiple Choice Questions Ten Matching Questions

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info

General Test InfoTest 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!