CGHS Economics CH. 4 Vocabulary Quiz

What does the term "Demand" refer to in economics?

• The total supply of a good in the market

• The quantities of a good that consumers are willing and able to buy at various prices

• The cost of producing a good

• The profit made from selling a good

According to the law of demand, how does the quantity demanded relate to its price?

• Directly proportional

• Inversely proportional

• Unrelated

• Exponentially proportional

What is "marginal utility"?

• The total satisfaction from consuming a good

• The change in total utility from a one-unit change in consumption

• The cost of producing an additional unit

• The price of a good

What does the law of diminishing marginal utility state?

• Utility increases with each additional unit consumed

• Utility remains constant with each additional unit consumed

• Marginal utility decreases as more of a good is consumed

• Marginal utility increases as more of a good is consumed

What is a "demand curve"?

• A line showing the supply of a good

• A curve showing the quantities demanded at various prices

• A graph of production costs

• A chart of consumer preferences

What does "quantity demanded" refer to?

• The total market demand

• The amount demanded at a particular price

• The supply available at a given time

• The cost of a good

What is "individual demand"?

• The demand of all consumers in a market

• The demand of an individual consumer

• The supply of a single producer

• The total market supply

What is "market demand"?

• The demand of a single consumer

• The sum of individual demands of all consumers

• The supply of all producers

• The total production cost

What does "elasticity of demand" measure?

• The total demand in a market

• How responsive quantity demanded is to a price change

• The cost of producing a good

• The supply elasticity

How is "total revenue" calculated?

• Price multiplied by the quantity supplied

• Price multiplied by the quantity demanded

• Total cost minus total profit

• Total demand divided by total supply