Supply and Demand Vocabulary Quiz

What is the demand schedule?

• A table that shows the market share of a good or service at different price levels

• A table that shows the quantity supplied of a good or service at different price levels

• A table that shows the quantity demanded of a good or service at different price levels

• A table that shows the production cost of a good or service at different price levels

What does the law of demand say?

• When the price of a product goes up, the quantity demanded will increase exponentially

• When the price of a product goes up, the quantity demanded will go down – and vice versa

• When the price of a product goes up, the quantity demanded will stay the same

• When the price of a product goes up, the quantity demanded will go up – and vice versa

What is marginal utility?

• The added demand a consumer gets from having one more unit of a good or service

• The added cost a consumer gets from having one more unit of a good or service

• The added profit a consumer gets from having one more unit of a good or service

• The added satisfaction a consumer gets from having one more unit of a good or service

What is the concept of diminishing marginal utility?

• As more units of a good are consumed, the marginal utility from the consumption of the next unit becomes greater

• As more units of a good are consumed, the marginal utility from the consumption of the next unit becomes lesser

• As more units of a good are consumed, the marginal utility from the consumption of the next unit remains constant

• As more units of a good are consumed, the marginal utility from the consumption of the next unit becomes zero

What is the definition of incentive?

• Something, especially money, that forces a person or organization to do something

• Something, especially money, that has no effect on a person or organization

• Something, especially money, that encourages a person or organization to do something

• Something, especially money, that discourages a person or organization to do something

What is the definition of prevail?

• Existing in a particular place or at a particular time

• Existing in all places at all times

• Not existing in any place at any time

• Not existing in a particular place or at a particular time

What is the definition of inversely?

• A situation where if one variable decreases, the other tends to decrease

• A situation where if one variable increases, the other tends to increase

• A situation where if one variable increases, the other tends to decrease

• A situation where if one variable decreases, the other tends to increase

What is microeconomics?

• The study of the behavior of government policies and regulations

• The study of the behavior of international trade and finance

• The study of the behavior of individuals and firms in making decisions regarding the allocation of scarce resources

• The study of the behavior of the economy as a whole

What is the demand curve?

• A graphical representation of the relationship between the cost of a good or service and the quantity demanded for a given period of time

• A graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time

• A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time

• A graphical representation of the relationship between the cost of a good or service and the quantity supplied for a given period of time

What is the definition of demand?

• A consumer's desire to purchase goods and services and willingness to pay a specific price for them

• A producer's desire to sell goods and services and willingness to accept a specific price for them

• A consumer's desire to sell goods and services and willingness to accept a specific price for them

• A producer's desire to purchase goods and services and willingness to pay a specific price for them