Economics Quiz

What does a YED of -1.2 for a product indicate?

• The product is a luxury good.

• The product is a necessity.

• The demand for the product is perfectly inelastic.

• The demand for the product is income inelastic and it is an inferior good.

What does a YED of 0.2 suggest about a product?

• The product is a luxury good.

• The product is a necessity.

• The demand for the product is perfectly inelastic.

• The demand for the product is income elastic and it is a normal good.

What does a PED of -1.3 signify for a product?

• The product has a perfectly elastic demand.

• The product has a perfectly inelastic demand.

• The product has a unitary elastic demand.

• The product has an elastic demand.

Aside from drawing a line of estimation on a chart, how else can extrapolation be conducted?

• Using a ruler to extend the line.

• Using historical data to predict future trends.

• Guessing the future values.

• Asking experts for their opinions on future trends.

Identify two factors in the external environment that can cause the demand of a business to increase.

• Decrease in consumer income and higher interest rates.

• Improved product quality and lower production costs.

• Increase in consumer income and positive changes in consumer tastes.

• Technological advancements and employee training.

What does a negative YED indicate about a product?

• It is a luxury product.

• It is a normal good.

• It is an inferior product.

• It has elastic demand.

If the YED of a good is positive and less than 1, what type of good is it and what is its elasticity?

• Normal good and inelastic.

• Inferior good and elastic.

• Normal good and elastic.

• Inferior good and inelastic.

What does a PED greater than 1 signify about a good?

• The good is inelastic.

• The good is a necessity.

• The good is elastic.

• The good is inferior.

Which of the following can lead to an increase in consumer demand?

• An increase in consumer income.

• A decrease in consumer income.

• An increase in interest rates.

• A decrease in population size.

What is the focus of decision making to improve marketing performance?

• Productivity, Quality, supply chains

• Market research, segmentation, Product life cycle

• Profit, break-even, cashflow

• Motivation, organizational design