Demand Drivers MCQ Quiz

What are the four components of demand as derived from the Keynesian equation of GDP?

• Consumption, Imports, Savings, Investment

• Consumption, Investment, Government Spending, Net Exports

• Savings, Government Spending, Imports, Exports

• Investment, Consumption, Trade Deficit, Government Revenue

In industrial markets, which component of demand is the most significant?

• Consumption

• Investment

• Government Spending

• Net Exports

What reflects trade balance and competitiveness?

• Consumption

• Investment

• Net Exports

• Government Spending

What is the primary focus of consumer goods markets?

• Government Spending

• Investment

• Consumption

• Net Exports

What is NOT a condition for effective demand to materialize?

• Desire for goods/services

• Willingness to save

• Ability to pay

• Willingness to spend

What can influence the willingness to spend?

• Psychological confidence

• Access to credit

• Trade deficits

• Cultural diversity

What reflects the 'ability to pay' condition?

• Economic confidence

• Disposable income or access to credit

• Consumer preferences

• Market competitiveness

How is inelastic demand defined?

• Demand changes significantly with price changes

• Price changes have little effect on demand

• Demand increases with lower prices

• Luxury goods show this behavior

Which of the following products is an example of inelastic demand?

• Shampoo

• Gasoline

• Luxury watches

• Smartphones

What type of elasticity do luxury goods typically exhibit?

• Negative elasticity

• Zero elasticity

• Positive elasticity

• Infinite elasticity