The main reason individuals consume goods and services is:

• To increase demand

• To increase personal satisfaction

• To drive the economy

• None of these

If there is a shortage, what will price do?

• Price will increase.

• Price will shift to the right.

• Price will stabilize.

• Price will exponentially decrease.

How is a shortage created?

• When demand increases.

• When demand decreases.

• When demand stagnates.

• When supply increases.

If there is a surplus, what will price do?

• Price will decrease.

• Price will stabilize.

• Price will fluctuate.

• Price will increase.

When orange juice producers put OJ on sale because they have too much OJ in warehouses, this excess is called:

• Equilibrium.

• Leftovers.

• Surplus.

• Shortage

States that people buy a different quantity of a product if that product’s price changes, appearing as a movement along the demand curve.

• Change in demand

• Change in supply

• Change in quantity demanded

• Change in quantity supplied

You express demand for a product when you

• Are willing to purchase it

• Are able to purchase it

• Both are correct

• Neither are correct

The effect that increasing or decreasing prices has on the buying power of a person is better known as....

• Income Effect

• Substitution Effect

• Diminishing Marginal Returns

• Inflation

Goods for which demand goes down as income goes up are better known as....

• Inferior Goods

• Normal Goods

• Public Goods

• Private Goods

This is a product that can be used in place of another product:

• Product Good

• Complementary Good

• Related Good

• Substitution