Econ: Ch. 4 - Demand and Ch. 5 - Supply

When a consumer is able and willing to buy a good or service, he or she creates which of the following?

• consumption

• demand

• elasticity

• allocation

Which of the following is a mathematical representation of the definition of profit?

• fixed cost + variable cost

• total revenue – total cost

• total revenue/total cost

• total revenue x total cost

Which of the following is the BEST example of a variable cost for a major league baseball franchise?

• stadium mortgage

• stadium maintenance

• ticket-takers' wages

• manager’s salary

How is the current demand for a good related to its future price?

• If the price is expected to rise, current demand will drop.

• If the price is expected to fall, current demand will rise.

• If the price is expected to rise, current demand will rise.

• Current demand is not related to future price.

Ceteris paribus, or “all other things held constant,” is an assumption that has which of the following effects on a demand schedule?

• It takes only prices into account.

• It considers the effects of all possible changes on demand.

• It is accurate no matter what changes occur.

• It is accurate only at one price level.

What shows the quantities of products demanded at each price by all consumers in a market?

• elasticity and consumption list

• schedule of consumer prices

• market pricing list

• market demand schedule

What does it mean when the demand for a product is inelastic?

• People will not buy any of the product when the price goes up.

• A price increase does not have a significant impact on buying habits.

• it slows an economy down for at least a while

• it reduces the available jobs

What kind of table lists the quantity of a good that a person will buy at different prices?

• demand schedule

• demand curve

• market demand schedule

• market demand curve

Which of the following is the BEST example of a store’s fixed cost?

• short-term workers

• rent

• advertising

• inventory

What is a basic principle of the law of demand?

• The higher the price, the more people will want the good.

• Everyone has a limited income that they will spend.

• When a good’s price is lower, people will buy more of it.

• Services are of interest in the same way that goods are.