Chapter 4, 5, 6 eco. test

The branch of economics that deals with behavior and decision making by

small units such as individuals or business firms is referred to as _____.

• a) macroeconomics

• b) microeconomics

• Keynes’ economics

• supply-side economics

Products that can be used in place of other products (such as Coke and

Pepsi) are ___.

• complements

• identical

• generics

• d) substitutes

The extra usefulness or satisfaction from acquiring one more unit of a product

is ___.

• marginal utility

• substitution effect

• Law of Demand

• Law of Supply

Products that tend to be used together are referred to as _____.

• substitutes

• complements

• dual purpose

• interchangeable

Which of the following would cause a change in the quantity demanded of

a product?

• changing consumer tastes

• increasing consumer income

• decreasing the price of the product

• all of the above

All of the following are examples of complements EXCEPT _____.

• butter and margarine

• coffee and sugar/creamer

• cameras and film

• peanut butter and jelly

Which of the following would cause a change in demand of a product?

• increasing the price of the product

• the income effect of a change in the consumer’s real income as a result of

  a change in price

• change in the consumer’s tastes

• all of the above

How does the demand curve respond to an increase in demand?

• the curve shifts to the left

• the curve shifts to the right

• there is movement along the curve from one point to another

• there is no change in the curve

Identify the term that refers to the following economic principle: the more units

of an economic product a person acquires, the less eager that person is to

buy still more.

• Law of Demand

• Substitution effect

• Change in the quantity demanded

• Diminishing marginal utility

The Law of Demand states that the demand for an economic product _____.

• varies inversely with its price

• varies directly with its price

• varies inversely with supply

• varies directly with supply