UNIT 2: Microeconomics I

For the "typical American household" what is the leading expenditure?

• Housing costs
• Healthcare expenses
• Transportation costs
• Food expenses

Which of the following is not a shift of the demand curve?

• The number of producers in the marketplace

• A change in income

• A change in consumer preferences
• An increase in consumer tastes

A popular music artist endorses a soft drink, what shift would happen on a supply and demand curve for that product?

• The demand curve shifts to the right (increases)

• The supply curve shifts to the right (increases)

• The demand curve shifts to the left (decreases)

• The supply curve shifts to the left (decreases)

The price of peanut butter decreases, what shift would take place on the supply and demand curve for jelly?

• The supply curve for jelly shifts to the left (decreases)

• The demand curve for jelly shifts to the right (increases)

• The demand curve for jelly shift to the left (decreases)

• The supply curve for jelly shifts to the right (increases)

What economic term determines the pleasure of satisfaction obtained from a good or service?

• supply
• utility
• demand
• opportunity cost

What economic term describes why an individual does not have unlimited demand for their favorite food?

• Unlimited demand theory
• Fixed supply constraint
• Diminishing marginal utility
• Price elasticity of demand

According to the law of demand, as the price of a good falls the quantity of the good demanded will...?

• increase
• decrease
• remain the same
• need other known factors to answer

Which of the following goods would be the least elastic for demand?

• Candy Bar

• Health Care

• Car

• Sweatshirt

A good that sees demand severely fluctuate depending on the price is considered?

• Unitary Elastic

• Inelastic

• Elastic

• Unitary Inelastic

To find total revenue, one would multiply the quantity sold of a good by what?

• Price

• Market demand
• Shipping fees
• Cost