Ch. 4 Quiz

Which field of economics studies individual and business decisions?

• Market Economy

• Demand Curve

• Microeconomics

• Law of Demand

What is the term for the total demand for a good or service in a market?

• Demand Curve

• Market Demand Curve

• Microeconomics

• Marginal Utility

What concept describes the decrease in satisfaction as more units are consumed?

• Diminishing Marginal Utility

• Law of Demand

• Demand Curve

• Market Economy

What is the term for a shift in the entire demand curve?

• Change in quantity demanded

• Substitution effect

• Change in demand

• Illustrated

Which effect occurs when consumers replace a more expensive item with a less expensive one?

• Income effect

• Substitution effect

• Change in demand

• Complements

What is the result when individual demand curves are combined?

• A supply curve

• A market demand curve

• A production possibility curve

• A cost curve

What happens to satisfaction as more of an item is purchased, according to the concept of marginal utility?

• Satisfaction increases

• Satisfaction remains constant

• Satisfaction decreases

• Satisfaction doubles

What is the term for the decrease in satisfaction from using additional units of a product?

• Increasing returns

• Diminishing marginal utility

• Constant utility

• Marginal cost

Which concept is used to describe the usefulness one receives from a product?

• Cost

• Utility

• Demand

• Supply

What is the relationship between marginal utility and demand?

• Marginal utility explains much about demand

• Marginal utility decreases demand

• Marginal utility has no effect on demand

• Marginal utility increases demand